INTEGRATED COSTAL ZONE MANAGEMENT PROJECTsicom.nic.in/sites/default/files/Procurement_Manual_ICZM_Project.pdf · integrated coastal zone management approaches, the Government of India

SOCEITY OF INTEGRATED COASTAL MANAGEMENT (SICOM) MINISTRY OF ENVIRONMENT & FORESTS

GOVERNMENT OF INDIA

INTEGRATED COSTAL ZONE MANAGEMENT

PROJECT

PROCUREMENT MANUAL

(Revised: October 10, 2013)

Integrated Coastal Zone Management Project Procurement Manual (Revised) October 2013

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Index Chapter

Number

PARTICULARS Page

Number

Chapter 1 Introduction 3

Chapter 2 Institutional Arrangement in the Project 6

Chapter 3 Procurement Arrangements in the Project 9

Chapter 4 Procurement of Goods, Civil Works, and Non-

Consulting Services

29

Chapter 5 Selection of Consulting Services 58

Chapter 6 Community Procurement 77

LIST OF ENCLOSURES

Attachment Procurement Formats 80

Enclosure - 1 Format of Invitation of Bids (IFB) National Competitive

Bidding

88

Enclosure - 2 Minutes of Bid Opening (NCB Goods/ Works) 89

Enclosure - 3 Suggested Format for Bid Evaluation Report for Civil

Works (NCB)

91

Enclosure - 4 Suggested Format for Bid Evaluation Reports for Goods

and Equipment (NCB)

99

Enclosure - 5 Formula for Price Adjustment (application in respect of

contracts of Rs.45.00 lakhs and above).

110

Enclosure - 6 Format for seeking Bank’s clearance for increase in

Contract Value beyond 15% of the Original Contract Value

as well as for granting extension of the Stipulated Time for

performance of the Contract.

113

Enclosure - 7 Procurement Check List for Contracts Above Prior Review

Threshold for Civil Works

115

Enclosure - 8 Procurement Check List for Contracts Above Prior Review

Threshold for Goods and Equipment

119

Enclosure - 9 Procurement Check List for Post-Award Review of

Contracts for Civil Works

122

Enclosure - 10 Procurement Check List for Post-Award Review of

Contracts for Goods and Equipment

128


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CHAPTER 1

INTRODUCTION

1.1 CONTEXT

The purpose of this Manual is to inform the concerned staff of NPMU, SPMU and

implementing agencies, the objectives of the project, and guidelines for

implementation of the project and to keep the officers informed about various

procurement procedures applicable to this project. As the responsibility for the

implementation of project, award and administration of contracts lies with the

Borrower, it is important to get acquainted with the procurement procedures of the

World Bank. Procurement of all works, goods and consultancy services under the

project would be carried out in accordance with the World Bank’s "Guidelines:

Procurement under IBRD Loans and IDA Credits" dated January 2011; and

"Guidelines: Selection and Employment of Consultants by World Bank Borrowers"

dated January 2011 and the provisions stipulated in the Financing Agreement

[Hereafter called “Bank Procurement Guidelines” or “Bank Guidelines”]. These

Guidelines published by the World Bank need to be understood and followed by the

Central and State Governments so as to enable them to procure ‘Works’, ‘Goods’ and

‘Consultant Services’ in the project. Adoption of these procedures will ultimately

result in efficiency, economy, fairness and transparency in procurement. If there is a

conflict between the procurement procedures laid down in the World Bank

Procurement Guidelines and this manual, the GFR 2005 or state government or any

PEAs procurement procedures then World Bank Procurement Guidelines will prevail

in the Project.

1.2 PROJECT NAME AND DESCRIPTION

Up to now, the approach to managing India’s coastal zone has been a purely regulatory

one, as per the Coastal Regulation Zone (CRZ) Notification of 1991, promulgated

under the Environment (Protection) Act of 1986. This approach does not provide room

to balance coastal zone conservation and necessary economic growth in the area or

seek convergence with other development activities. Increasing developmental

pressure during the last decade led to violations of legal provisions and the economic

sector simultaneously demanded for rationalizing the present regulatory measures. In

July 2004, the Ministry of Environment and Forests (MoEF) constituted an Expert

Committee, under the chairmanship of Prof. M.S. Swaminathan, to carry out a

comprehensive review of the Coastal Regulation Zone notifications, taking into

account the findings and recommendations of all previous committees, judicial

pronouncements, representations from various stakeholders and suggest suitable

amendments. The committee also had the mandate to make the regulatory framework

consistent with well-established scientific principles of coastal zone management and

more flexible, depending on the local characteristics of the coastal zone stretches to be

protected.


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The Swaminathan Committee submitted its report in February 2005, recommending a

number of reforms to facilitate conservation of ecosystems in the coastal zone, and at

the same time promoting economic development and poverty reduction in the coastal

areas.

The Swaminathan Committee recommended that, to support the implementation of

integrated coastal zone management approaches, the Government of India should

strengthen the technical and human resource capacity in the country. As part of its

recommendation, the Swaminathan Committee recommended establishment of the

National Institute for Sustainable Coastal Zone Management.

The MoEF is now mandated to implement the recommendations of the Swaminathan

Committee and has requested the World Bank for support in the implementation of the

Swaminathan Committee report and various initiatives to be undertaken to institute a

pro-active management of the Coastal Zone. To achieve the objectives of integrated

coastal zone management in the coastal areas of India, the Ministry of Environment

and Forests (MoEF), Government of India has prepared Integrated Coastal Zone

Management (ICZM) project with the financial assistance from the World Bank.

1.3 SCOPE OF THE PROCUREMENT MANUAL

Procurement Manual contains procedures to be followed for procurement of goods,

works and consultancy services for implementation of ICZM Project. The manual is

based on World Bank Guidelines and will be applicable for the PEAs/stakeholders in

implementation of program, namely, NPMU, SPMU and all other implementing

agencies. The Manual includes draft of Invitation of Bids; briefs of Contract Data;

eligibility for sub-contracting the works; pre-bid conference; procurement process,

evaluation of bids for works and goods, award of contract and review requirements by

the World Bank at appropriate stages.

Appropriate Standard Bidding Documents of the Bank as agreed by the GOI Task

force with the World Bank (as amended from time to time) shall be followed for

procurement of goods, works and services for individual sub-projects following

National Competitive Bidding Procedures as per approved Procurement Plan, and for

changes, if any, prior clearance of the World Bank shall be required. The State

Financial Rules, Manual of Orders and Accounts Code relating to procurement of

goods, works and services have been kept in view in the preparation of this Manual to

the extent they are consistent with the World Bank guidelines.

For Procurement of Goods and Works following International Competitive Bidding

Procedures and for Consulting Services by Firms shall use the World Bank

SBDs/SRFP available in the World Bank website as given below:

http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,pagePK:8

4271~theSitePK:84266,00.html

http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,pagePK:84271~theSitePK:84266,00.html

http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,pagePK:84271~theSitePK:84266,00.html


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1.4 MODIFICATION TO MANUAL

The Manual shall be a reference tool for the project implementation by the Project

Implementing Agency and related agencies. The guidelines and procedures for

procurement of goods, works and services laid down in this manual can be modified by

MOEF with prior approval of the World Bank.

1.5 DEFINITIONS

“Project” means ‘Integrated Coastal Zone Management Project’ (World Bank

assisted).

“Accounting Year”, “Year”, or “Financial Year” mean the year commencing from 1st

of April and ending on 31st of March of succeeding year.

“Package” means clubbing of similar types of equipment.

“Committed expenditure” means expenditure for which firm purchase orders/ work

orders have been placed and includes the bills pending for payment.

“NPMU” means National Project Management Unit set up by Ministry of Environment

and Forest for facilitating, implementing, coordinating and monitoring Project

activities at the National level.

“SPMU” means State Project Management Unit set up in the state to facilitate,

implement, coordinate and monitor the Project activities at the State level.

“PEA” means any pilot investment executing agency, which could be a government

department or a specialized agency, as nominated by the project state and/or MoEF

“Procurement Guidelines” or “Bank Guidelines” means "Guidelines: Procurement of

Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and

Grants by World Bank Borrowers" dated January 2011; and "Guidelines: Selection and

Employment of Consultants under IBRD Loans and IDA Credits & Grants by World

Bank Borrowers" dated January 2011 and the provisions stipulated in the Financing

Agreement.


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CHAPTER 2

INSTITUTIONAL ARRANGEMENTS IN THE PROJECT

2 INSTITUTIONAL ARRANGEMENTS

2.1 Project Institutional Structure

2.1.1 Institutional arrangements: The project has four implementing agencies - MoEF at the

national level with lead responsibilities, and the Departments of Forests and

Environment of the three participating states. The MoEF and the said State

Departments have the sole mandate and experience in coastal zone management and

were, therefore, the obvious choice to lead project implementation.

2.1.2 Each of these four main partners has already set up special purpose vehicles in the

form of registered societies (NPMU and SPMUs), to manage the project and achieve

the PDOs; coordinate project activities on a full-time basis and directly execute some

of the relevant project sub components. In addition, empowered committees (such as

the Governing Council at the national level, and State Empowered Committee or State

Steering Committees at the state levels) have been set up for inter-sector coordination.

Table 2.1: Implementing Agencies and their Responsibilities

Implementing

Agencies

Responsibilities Special Purpose

Societies

Delegated

Responsibilities

GoI - MoEF Providing national

policy and

implementation

framework; approval

of project‘s overall

annual action plans

and budget; and

implementation

oversight.

NPMU (Society for

Integrated Coastal

Management -

SICOM)

Project

implementation

leadership;

accountability to

achieve PDOs;

Implementation of

Component One.

Gujarat Forests and

Environment

Department

Providing state policy

and implementation

framework; approval

of state level annual

action plans and

budget; ensuring

timely counterpart

financing from state

budget; and

implementation

oversight.

SPMU (housed in the

Gujarat Ecology

Commission or GEC)

State level project

implementation

leadership;

accountability to

achieve PDOs;

Implementation of

State Components.

Orissa Department

of Environment and

Forests

SPMU (Orissa SPM

Society)

West Bengal

Environment

Department

SPMU (housed in the

Institute of

Environmental

Sciences and Wetland

Management or

IESWM)


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2.1.3 The NPMU and SPMUs will be responsible for all procurement, ensuring prudent

financial management, quality assurance, monitoring and evaluations under the

project. The NPMU and SPMUs will collaborate with a range of government

departments or specialized agencies (the PEAs) that have jurisdiction, demonstrated

capacity and expertise in management and execution of the proposed pilot

investments. PEAs will be responsible for contract management including signing of

contracts, regular supervision, contract payments and accounting. In the cases of

community procurement, force accounts, and procurement of small incremental

operating facilities through local shopping, PEAs will manage the entire procurement

process with necessary support from NPMU/SPMUs. The sharing of roles and

responsibilities, including administrative and fiduciary arrangements among the

NPMU/SPMUs and the PEAs has been agreed and documented in the signed bilateral

MOUs.

2.1.4 The NPMU/SPMUs will collaborate with and seek support from and partnership with

a range of other agencies to strengthen the capacity of the main implementing

agencies. These will include international, national and local knowledge centers;

academic and research institutes; private sector business houses and industries; urban

and rural local government bodies; civil society groups, NGOs, community based

organizations and other government departments responsible for coastal zone

development and protection.

2.1.5 During implementation, only the NPMU will submit consolidated reimbursement

requests for the entire project based on interim unaudited financial reports (state level

consolidation will be done by the SPMU and forwarded to NPMU). There will be

only one special account for this project.

2.1.6 To be able to efficiently implement the above-mentioned responsibilities, adequate

provision of staff, capacity and resources has been made within the NPMU and

SPMUs (and within the PEAs as required and relevant). The proposed institutional

arrangements, powers, roles and responsibilities of the various actors and their

organizational linkages are presented in Annex 6 of the PAD, and complete details are

described in the Project Implementation Plan (PIP).

2.1.7 The NPMU and SPMU will implement the project along with the following PEAs

implementing agencies under them:-

a. NPMU

i. The Survey of India

ii. The National Center for Sustainable Coastal Management

iii. The MS Swaminathan Research Foundation

iv. The Gujarat Ecology Commission for DANDI activity

b. SPMU, Gujarat

i. The Gujarat Ecology Commission

ii. The Marine National Park

iii. The GEER foundation

iv. The Jamnagar Municipal Corporation


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v. The Gujarat Pollution Control Board

vi. The Bhaskaracharya Institute for Space Applications and Geo-

Informatics (BISAG).

vii. The Tourism Corporation of Gujarat Ltd.

viii. The Kachchh Circle (Forest Division)

c. SPMU, Odisha

i. The Water Resources Department

ii. The Orissa State Pollution Control Board

iii. The Orissa State Disaster Management Authority (OSDMA)

iv. The Department of Forest & Environment (Wildlife Wing)

v. The Department of Fisheries

vi. The Department of Culture

vii. The Micro, Small & Medium Enterprises Department.

viii. The Chilka Development Authority (CDA)

ix. The Paradip Municipality

x. The Orissa Tourism Development Corporation

d. SPMU ,West Bengal

i. The Digha Shankarpur Development Authority

ii. The Directorate of Forest ,

iii. The Department of Disaster Management.

iv. The Institute of Environmental Studies and Wetland Management

v. The Public Health Engineering Directorate

vi. The Sundarban Infrastructure Development Corporation Limited

vii. The Calcutta University

viii. The West Bengal Fisheries Development Corporation Limited

ix. The West Bengal State Electricity Distribution Company Ltd.

x. The Zoological Survey of India


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CHAPTER 3

PROCUREMENT ARRANGEMENTS IN THE PROJECT

3 PROCUREMENT ARRANGEMENTS

3.1 INTRODUCTION:

3.1.1 The NPMU and SPMUs will be responsible for all procurement, financial

management, quality assurance, monitoring and evaluations under the project. PEAs

will be responsible for assisting NPMU/SPMU in technical aspects of procurement and

will also be responsible for contract management, regular supervision, and certification

for payments. Exceptions to the above rule are the cases of (a) community

procurement, force accounts, and procurement of small works, office equipment,

furniture and IT equipment following shopping procedure, consumables under

incremental operating costs (IOC) through local shopping for which all responsibilities

will lie with the PEAs; and (b) PEAs who have adequate procurement capacity, and

has been found suitable, based on an assessment of procurement capacity by the World

Bank, to undertake the entire procurement of goods and civil works on their own.

3.1.2 NPMU and SPMU of each state shall prepare its procurement plan and procurement

activity schedule for the project life. Procurement plan is essentially planning of what

procurement of goods and works is to be carried out and at what time during the year.

Separate procurement plan shall be prepared for Consultancies, Goods and Works.

Procurement plan shall include Goods/Consultancies/Works to be procured; and the

details regarding their estimated value, method of procurement, review by the Bank,

bid opening date or receipt of technical proposal date. Methods of procurement to be

adopted as well as review of contracts by the World Bank will be decided based on

the total value of a tender/IFB rather than on the value of each individual contract/

schedule/ lot/ slice within the tender.

3.1.3 The Procurement Plan and Procurement Activity Schedule shall be submitted to the

World Bank for review and clearance. The procurement action will be initiated only

after World Bank’s no-objection to the Procurement Plan and the Procurement

Activity Schedule. The Procurement Plan (including all its revisions) shall be

disclosed in the NPMU/SPMU website, notice boards and World Bank’s website.

3.1.4 The Project shall update the Procurement Plan annually or as needed throughout the

duration of the project. The updated procurement plan shall be cleared with the World

Bank and published as described in Section 3.1.3.

3.1.5 All procurements in the project will be carried out as per the agreed procurement plan.

The procurement plan at the States will be executed by SPMU. At the state level

NPMU has no role in procurement except that all the prior review contracts will come

to the Bank through NPMU. All procurement done outside the procurement plan will

be ineligible for reimbursement from the Bank.


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3.1.6 Ineligible expenditures: There is no expenditure which does not fulfill eligibility

conditions of Procurement/Consultant Guidelines that were identified during project

preparation1. During implementation if such requirements arise, those will be financed

from the governments’ own resources and will not be eligible for financing from the

Credit/Loan.

3.2 SELECTION OF CONSUTANTS

3.2.1 Selection process for all consultancies either required by PEAs or by NPMU/SPMU

for their respective project components will be handled by NPMU/SPMU.

Exceptions2 to the above rule are the cases of (a) recruitment of individual contract

staff and consultants for routine project management activities, where agreed in

principle by NPMU/SPMU, for which all responsibilities will lie with the PEAs; and

(b) with effect from April 2013 as per agreed with the World Bank, selection of

consultancies below a threshold amount of US$200,000 equivalent for each contract

in the case of specific PEAs who have adequate procurement capacity, and has been

found suitable, based on an assessment of procurement capacity by the World Bank,

to undertake the entire procurement of goods and civil works on their own.

3.2.2 In case the consultancy services are required by the PEA, the TOR of the

consultancies will be framed by the respective PEAs and the whole Selection process

i.e., Advertisement, Short-listing, Proposal Evaluation, Award of Contract etc., will be

carried out by the NPMU/SPMU with technical assistance from respective PEA.

However Signing of the Contract will be done by PEA. Once consultancies are

awarded, PEAs will be responsible for management and supervision of the

consultancy contract to obtain the agreed outputs and release of payments.

NPMU/SPMU will participate in the review of interim and final outputs and provide

overall guidance to PEAs in management of consultancy contract.

3.2.3 Some PEAs, as per agreed with the World Bank, such as the NCSCM, the OSDMA

and the WBSEDCL will procure all Goods and Civil Works by themselves. These

PEAs, with effect from April 2013, will also be eligible and be entirely responsible

for selection of consultancies below a threshold amount of US$200,000 equivalent for

each contract. For these PEAs, the procedures listed in all applicable sections below

will apply.

3.2.4 The Bank’s Consultant Guidelines January, 2011will be applicable for Selection of all

consultancies under the Project. The Bank’s standard RFP will be used as a basis for

selection of all consultancies under the Project.

3.2.5 The methods for selection of Consultants of firms include the following and have

been dealt in details in the subsequent chapters:

a) Quality and Cost Based Selection (QCBS);

1 The specific case of ineligibility of purchase of satellite imageries from National Remote Sensing Agency

(NRSA) that was identified during project preparation remained valid for the duration up to March 2013; and

purchases subsequent to April 01, 2013 is eligible as a consequence of adopting World Bank Procurement

Guidelines of January 2011 replacing the use of said Guidelines of 2004 (revised up to October 2006). 2 These exceptions (to the rule that all selection of consulting services will be done by NPMU/SPMUs only)

were agreed with the World Bank in view of accelerating procurement given the slower than anticipated

progress on procurement until the Fourth Joint Implementation Support Mission, January-February 2013.


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b) Quality Based Selection (QBS);

c) Selection under a Fixed Budget (FBS);

d) Least Cost Selection (LCS);

e) Selection Based on Consultants Qualification (CQ);

f) Single Source Selection (SSS).

3.2.6 The choice of the appropriate method of selection is related to the nature, size,

complexity and likely impact of the assignment, technical and financial

considerations. The method of selection for each consultancy shall be given in the

procurement plan and NPMU/SPMU (or in the specific cases, the PEAs)3 will execute

the procurement plan agreed with the Bank. No selection of consultancy shall be

initiated outside procurement plan and such selection shall not be eligible for Bank

financing.

3.2.7 Proposal opening and evaluation committee:

a) For selection of each consultancy a proposal opening and evaluation committee shall

be formed. The proposal opening and evaluation committee will have 3-5 members

and will have representation of the PEA involved and would be headed by the

Additional Project Director or any other person nominated by the Project Director of

NPMU/SPMU. An outside technical expert wherever necessary will also be a member

of the proposal opening and evaluation committee. In the case none of the PEA is

involved in the consultancy assignment, no representation of any officer of any PEA

is necessary in the proposal opening and evaluation committee. In the case of NPMU,

a representative of finance cell shall be a member of every proposal opening and

evaluation committee set up by the National Project Director. When specific PEAs are

responsible for the entire selection process4, the proposal opening and evaluation

committee for consultancies (other than for selection of Individual Consultants) will

be headed by an officer nominated by the Nodal officer of the PEA; and will also

have up to two members nominated by the Project Director of NPMU/SPMU.

b) The proposal opening and evaluation committee will technically and commercially

evaluate the proposals. The technical/financial evaluations of the committee with

recommendations will be placed before the Project Director (or the Nodal officer of

the specific cases of PEAs)5. Consultancy contract negotiations will be done by a

committee nominated by Project Director of NPMU/SPMU (or the Nodal Officer of

the PEA in the specific cases of PEAs responsible for the entire selection process).

The proposal opening and evaluation committee and negotiation committee can be

same. The negotiation committee should consist of at least two members from

proposal opening and evaluation committee and one member should be a finance

representative of the SPMU/NPMU (or the specific cases of PEAs)6.

3Inserted w.e.f 01 April 2013.





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3.2.8 The delegation of powers for selection and award of consultancy services

contracts:

a) The delegation powers for selection/hiring of consultancy services is as under:

Table 3.1:- Delegation of power in case of selection of Consultancy

S.no Proposal Up to Powers of

Procurement at SPMU

1 Up to Rs.3.0 Crore7with or

without bid premium

Project Director, SPMU

2 Beyond Rs.3.0 Crore8 Project Director, SPMU will be empowered to

award the contract with prior approval of the

Steering Committee/State Empowered Committee

Procurement at NPMU

1 Up to Rs.3.0 Crore9 with

or without bid premium

Project Director ,NPMU

2 Beyond Rs.3.0Crore10

Project Director, NPMU will be empowered to

award the contract with the approval of Governing

Council

Procurement at the Specific PEAs11

(as per agreed with the World Bank)

1 Up to US$200,000

equivalent12

with or

without bid premium

Nodal Officer of PEA

2 Above US$200,000 and

up to Rs.3.0Crore13

with or

without bid premium

Project Director, NPMU/SPMU as applicable

3 Beyond Rs.3.0 Crore14

Project Director, NPMU/SPMU as applicable will

be empowered to award the contract with the

approval of Governing Council/ Steering

Committee/State Empowered Committee

Procurement at all other PEAs15

1 Recruitment of individual

contract staff or consultant

for routine project

management activities.

Entire selection will be done by Nodal Officer of

PEA, subject to agreement with Project Director of

NPMU/SPMU prior to initiation of the selection

process.

2 All other selection of

consulting services

Entire procurement process will be primarily

managed by NPMU/SPMU, with support from

PEA.

b) Wherever the Proposal Price is more than the Estimated Cost, and the Proposal Price

exceed the power of Project Director SPMU/NPMU (as per table 3.1), the proposal

will be sent to the Steering Committee/ Empowered Committee/ Governing Council,

as the case may be, for approval, along with justification for approval. Whenever the

7 Revised from Rs.1.5 croreto Rs. 3.0 crorew.e.f. October 01, 2013.








15Inserted w.e.f 01 October 2013.


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Proposal Price including premium over and above the Estimated Cost is within the

delegated powers of the Project Director of NPMU/SPMU (as per Table 3.1) the

award of the contract for the consultancy service will be disposed at the level of

Project Director of NPMU/SPMU itself.

3.2.9 Thresholds for International Consultants:-The short list of consultancies estimated

to cost US$ 800,00016

or less may comprise entirely national level consultants.

In such cases include the following text in the REOI “In accordance with paragraph

2.7 of the Guidelines for the Selection and Employment of Consultants by World Bank

Borrowers, the short list for this assignment may comprise entirely of national

consultants, however foreign consultants may also express interest for consideration.

For that effect, all interested firms are informed that all documents, including the

Request for Proposals, the Proposal and consultant’s contract for the proposed

assignment will be issued in English, and contract price and corresponding payments

will be in Indian Rupees.”

3.2.10 Thresholds for Prior review by the World Bank17

: Prior review of the procurement

process by the World Bank is indicated in the procurement plan and as summarized

below:

3.2.11 First contract of any value from NPMU or SPMUs; subsequent contract valued over

US$ 600,000 equivalent for firms including NGOs, and above US$50,000 equivalent

for individuals; all contracts to be awarded on single source selection basis having

value in excess of US$20,000, will be subject to prior review by the World Bank.

Selections and contract awards to hire Project Director, procurement consultants,

inspection agents and legal advisors are subject to prior review, irrespective of the

contract value.

3.2.12 Prior review would be at the following stages:

a) Terms of Reference;

b) Short Listing; draft RFP and cost estimate [all together];

c) Technical Evaluation report;

d) Combined evaluation report for information and comments, if any;

e) Minutes of Negotiation and draft initialed negotiated contract;

f) The amendments in the case of contracts subject to prior review, before granting a

substantial extension of the stipulated time for performance of a contract, agreeing

to any substantial modification of the scope of the services, substituting key staff,

16Earlier the limit was US$500,000 which was revised to US$600,000 w.e.f. 27th August 2012 and to

US$800,000 w.e.f. 13th June 2013. 17Prior review thresholds were revised on 27th Aug 2012.Earlier Prior review thresholds were “First contract of

any value from NPMU or SPMUs; subsequent contract valued over US$ 200,000 equivalent for firms including

NGOs, and above US$50,000 equivalent for individuals; all contracts to be awarded on single source selection

basis irrespective of value will be subject to prior review by the World Bank. Selections and contract awards to

hire Project Director, procurement consultants, inspection agents and legal advisors are subject to prior review,

irrespective of the contract value.”


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waiving the conditions of a contract, or making any changes in the contract that

would in aggregate increase the original amount of the contract by more than 15

percent, the NPMU/SPMU shall seek the World Bank’s “no objection” to the

proposed extension, modification, substitution, waiver, or change. After no-

objection from the World Bank, the contract amendment shall be signed. A copy

of all such amendments to the contract shall be furnished to the World Bank; and,

g) The final contract with check list shall be submitted to the World Bank for record

and to obtain the WBR Number.

3.2.13 Responsibility Matrix:

a) In case the consultancy assignment (other than for selection of Individual

Consultants) is for PEA, the sharing of the responsibility by NPMU/SPMU and the

PEAs for conducting various tasks of the selection process is summarized in the Table

3.2. For selection of Individual Consultants, the entire selection will be done by Nodal

Officer of PEA, subject to agreement about need of such selection with Project Director of

NPMU/SPMU prior to initiation of the selection process.

Table 3.2:- Responsibility matrix –For consultancy required by PEA

S.no Activities Where Entire

Selection is by

NPMU or SPMU

Where Entire Selection

is by the Specified

PEA18

Organizational

Entity Organizational Entity

NPMU /

SPMU PEA

NPMU/

SPMU PEA

1 Assessment of requirement S P P S

2 Deciding on the Mode of

Selection P S S P

3 Preparation of TOR/RFP S P S P

4 Advertisement for short listing P P

5 Short listing of consultants P S S P

6 Receipt of technical and

financial proposal P P

7 Evaluation of Proposals P S S P

8 Negotiations P S S P

9 Award of consultancy P S Above US$

200,000

equivalent

Up to US$

200,000

equivalent

10 Signing of contract S P S P

11 Approval of the Payments P P

12 Supervision of the consultancy

contract S P S P

13 Release of the Payment to the

consultants S P S P

P --- Primary responsibility

S--- Secondary responsibility

18

Inserted w.e.f. 01 April 2013.


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b) In case PEA is not involved then SPMU/NPMU will be solely responsible for the all

the activities mentioned in the above Table 3.2.

3.2.14 Method of procurement to be adopted: The following methods of selection will be

adopted depending upon size and complexity of assignment, as defined in the

Consultancy Guidelines:

Table 3.3: Method of Selection for Consultancy Services

Category Method of Selection Threshold (US$ Equivalent)

Consultants’ Services CQS Up to US$100,000 per contract

SSS with prior agreement with the World

Bank

Individuals No Limit

Use of NGO As per paragraph 3.16 of the World

Bank Guidelines

QCBS/QBS/FBS/LCS

(i) International

shortlist19

(ii) Shortlist may

comprise national

consultants only

No limit

> US$800,000

Up to US$800,000

19

The earlier threshold was US$500,000.The thresholds were revised to US$600,000 w.e.f 27th August2012,

and to US$800,000 w.e.f. 13th June 2013.


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3.3 PROCUREMENT FOR GOODS AND WORKS

3.3.1 The World Bank’s Procurement Guidelines January, 2011 will be applicable for

procurement of all goods and Works under the Project. The World Bank’s bidding

documents as listed in this document will be used as basis for all procurement of

goods and works under the Project.

3.3.2 The methods of procurement that may be followed include the following and have

been dealt in details in the subsequent chapters:

a) International Competitive Bidding (ICB).

b) Limited International Bidding (LIB)

c) National Competitive Bidding (NCB).

d) Shopping (S).

e) Direct Contracting (DC).

3.3.3 Major goods and equipment to be procured under this project would include

procurement of variety of Laboratory equipment, marine research vehicle, small

boats, deep suction machine, generators, floating photogrammetric workstations,

office equipment, furniture, etc. Most of the laboratory equipment are sophisticated,

high value and shall be carried out following ICB /LIB/ NCB procedures depending

on the value of the contract. Office equipment, computers and furniture would be

procured adopting DGS&D rate contract or shopping method.

3.3.4 Procurement of Goods and Civil Works by NPMU/SPMU: The process to be

followed for procurement by NPMU/SPMU is as under:

(i) Administrative Approval

For Goods and Civil Works for the purpose of NPMU/SPMU: Administrative

approval of all procurement will be accorded by the Project Director, NPMU/SPMU.

For Goods and Civil Works for the purpose of PEA: The PEA will obtain

administrative approval of the Project Director, NPMU/SPMU once all bills of

quantities, specifications and drawings as relevant has been finalized by PEA and

after obtaining all necessary PEA internal technical approvals. Such administrative

approval of Project Director, NPMU/SPMU could be obtained through any of the

following means: (i) approval of the procurement Plan or its revisions; (ii) approval

of the Annual Action Plan; or (iii) approval of the specific bid if not covered by the

approved Procurement Plan or by the approved Annual Action Plan.

(ii) Preparation of Bid document:

For Goods and Civil Works for the purpose of NPMU/SPMU: Bid Documents will

be approved by a Bid Evaluation Committee of 3-5 members formed at

NPMU/SPMU headed by the Additional Project Director, and including procurement

staff of NPMU/SPMU (who will have a lead role in preparation of the Bid

Documents). External technical expert where ever necessary will also be members of

the Bid Evaluation committee. In case of NPMU a representative of the finance cell

shall be a member of every Bid Evaluation Committee set up by the Project Director

of NPMU.


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For Good and Civil Works for the purpose of PEA: Bid Documents will be prepared

by NPMU/SPMU with the help of respective PEAs. Bid Documents will be

approved by a Bid Evaluation Committee of 3-5 members which shall be formed at

NPMU/SPMU headed by the Additional Project Director, and including procurement

staff of NPMU/SPMU (who will have a lead role in preparation of the Bid

Documents), and representation of the PEA (who will be responsible for the

technical details in preparation of the bid document). External technical expert where

ever necessary will also be members of the Bid Evaluation committee. In the case of

NPMU a representative of finance cell shall be a member of every Bid Evaluation

Committee set up by the Project Director of NPMU.

(iii) Advertisement:

After the preparation of the bid documents advertisement shall be made by

NPMU/SPMU.

(iv) Receipt of Bids:

The bids shall be received at the office of NPMU/SPMU or any other place decided

by the Bid Evaluation Committee, and as specified in the Bid Documents.

(v) Evaluation:

The Bid Evaluation Committee will technically and commercially evaluate the bids.

The BER of the committee with recommendations will be placed before the Project

Director of NPMU/SPMU.

(vi) Award:

Based on the recommendation of the Bid Evaluation Committee, the Project Director

of NPMU/SPMU will take award decision for the contract and issue the Notification

of Award.

(vii) Signing of Contract:

The Nodal Officer of the PEA or the Project Director NPMU/SPMU will sign the

contract with the contractor as the case may be.

(viii) Contract Administration and Payments:

For Goods and Civil Works for the purpose of NPMU/SPMU: The contract will be

managed including supervision, monitoring and all payments by the NPMU/SPMU.

For Goods and Civil Works for the purpose of PEA: The contract will be managed

including supervision, monitoring and all payments by the PEA. NPMU/SPMU will

participate in the review of interim and final outputs and provide overall guidance to

PEAs in the management of contract.

3.3.5 Procurement of Goods and Civil Works by PEAs: The process to be followed for

procurement by PEAs is as under:

A: As all major procurements in the project will be handled at the

NPMU/SPMU, only the community procurement, force accounts, and local

shopping (procurement) of goods and civil works shall be done by PEAs.

NPMU/SPMU will provide guidance to PEAs for such procurement, including

helping preparation of relevant documents.


18 of 132

B: Some PEAs, as per agreed with the World Bank, such as the NCSCM20

, the

OSDMA and the WBSEDCL will also procure all Goods and Civil Works by

themselves following this procurement manual for the works included in the

procurement plan.

(i) Administrative Approval:

For all procurement by PEA, administrative approval will be taken from the Project

Director, NPMU/SPMU. If there is a deviation in the DPRs prepared at the time of

project preparation, technical approvals will be taken by PEA as per the current

practice of the PEA, in agreement with the NPMU/SPMU. The administrative

approval of Project Director, NPMU/SPMU could be obtained through any of the

following means: (i) approval of the procurement Plan or its revisions; (ii) approval

of the Annual Action Plan; or (iii) approval of the specific bid if not covered by the

approved Procurement Plan or by the approved Annual Action Plan.

(ii) Preparation of Bid document:

A Bid Evaluation Committee of 3-5 members shall be formed at the PEA, headed by

an authorized officer of the PEA. Bid documents (ICB/NCB/NS) for goods and civil

works shall be prepared by committee. All bid documents where estimate cost is

above US$300,000 shall be shared with NPMU/SPMU for information and

comments if any.

(iii) Advertisement:

After the preparation of the Bid Document, advertisement will be undertaken by the

Nodal officer of PEA wherever required.

(iv) Receipt of Bids:

All bids will be received at the office of the Nodal Officer of the PEA.

(v) Evaluation:

(a) Shopping (by all PEAs): The Bid Evaluation Committee will technically and

commercially evaluate the bids. The bid evaluation report of the committee with

recommendations will be placed before the Nodal Officer (and/or Competent

Authority) of the PEA for approval.

(b) ICB/NCB (for PEAs specifically agreed with the World Bank): The Bid

Evaluation Committee will technically and commercially evaluate the proposals. The

evaluations of the committee with recommendations will be placed before the Nodal

Officer (and/or Competent Authority) of the PEA. Entire procurement including

approval and award will be the responsibility of the PEA. However, concurrence on

the BER will be needed from the Project Director of NPMU/SPMU in cases where

the bid price exceeds US$300,000. Wherever the bid price exceeds US$5 million for

civil works and US$3 million for goods, the bid evaluation report (BER) will need to

be approved by, as relevant, the Governing Council of the NPMU or the State

Steering Committee / State Empowered Committee of the SPMU.

(vi) Award:

(a)Shopping: Within the administrative approval of the NPMU/SPMU, and based the

on the recommendation of the Bid Evaluation Committee, the Nodal Officer of the

PEA will award the contract. If the recommend award contract price is more than the

20

Inserted w.e.f. 01 April 2013.


19 of 132

administrative approval obtained, then the revised administrative approval has to be

obtained from the Project Director, NPMU/SPMU.

(b) ICB/NCB (for PEAs specifically agreed with the World Bank): Based on the

approval of BER and the recommendation to award the contract by the Bid

Evaluation Committee, the Nodal Officer of the PEA will issue notification for

award. In case where the value of the contract is in excess of US$300,000, the Nodal

Officer of the PEA will issue notification for award only after obtaining the

concurrence of Project Director NPMU/SPMU.

(vii) Signing of Contract:

The Nodal Officer of the PEA will sign the contract with the contractor.

(viii) Contract Administration and Payments:

The contract will be managed including supervision, monitoring and all payments by

the PEA. NPMU/SPMU will participate in the review of interim and final outputs

and provide overall guidance to PEAs in the management of contract.

3.3.6 Delegation of Powers for Awarding a Tender/Contract:

a) The powers of the procurement of Goods and civil works are as per Table 3.4.

b) Wherever the Bid Price is more than the Estimated Cost, and the Bid Price

exceed the power of Project Director SPMU/NPMU (as per Table 3.4), the BER

will be sent to the Steering Committee/ Empowered Committee/ Governing

Council, as the case may be, for approval, along with justification for approval.

Whenever the Bid Price including premium over and above the Estimated Cost is

within the delegated powers of the Project Director of NPMU/SPMU (as per

Table 3.4) the award of the contract will be disposed at the level of Project

Director of NPMU/SPMU itself.

3.3.7 In case of Bid Premium, i.e., where Bid Value is more than the Estimated Cost, the

BER will be sent to higher authority for approval, only if the bid value exceeds the

power of earlier authority as per Table 3.4, along with justification for approval.

3.3.8 Responsibility Matrix: In case the procurement of goods and civil works is for PEA,

the sharing of the responsibility by NPMU/SPMU and PEA for conducting various

tasks of the procurement process are summarized in the Table 3.5.

Table 3.4: Delegation of Powers for procurement of Civil Works and Goods

Type Procurement

By

Award

Amount

Powers Delegated to

Works or

Non-

Consulting

Services

NPMU or

SPMU

A Up to US$

5.0million

All the powers for the acceptance will be with the

Project Director of NPMU/SPMU, who may

further delegate the powers as and when required.

B Above US$

5.0million

Project Director, NPMU will be empowered to

award the contract with the approval of

Governing Council.

In the case of SPMUs, the Project Director,

SPMU will be empowered to award the contract

with the approval of the Steering

Committee/State Empowered Committee.


20 of 132

Type Procurement

By

Award

Amount

Powers Delegated to

NCSCM,

OSDMA and

WBSEDCL

and any other

PEA as agreed

with the

World Bank

A Up to US$

300,000

Nodal Officer (Competent Authority) of the PEA.

B Above

US$300,000

and below

US$5

million

Entire procurement including approval and award

will be the responsibility of the PEA. However

concurrence on the BER will be needed from the

Project Director of NPMU/SPMU.

C Above US$

5 million

Procurement handled by PEAs; but BER to be

approved by Governing Council/ State Steering

Committee / State Empowered Committee as

applicable through the Project Director of

NPMU/SPMU.

All Other

PEA

A Up to US$

50,000 using

shopping

procedures


B Above US$

50,000

Will be procured by SPMU/NPMU.

Goods NPMU or

SPMU

A Up to US$

5.0million

All the powers for the acceptance will be with the

Project Director of NPMU/ SPMU, who may

further delegate the powers as and when required.

B Above US$

5.0million

The Project Director, NPMU will be empowered

to award the contract with the approval of

Governing Council.

In the case of SPMUs, the Project Director,

SPMU will be empowered to award the contract

with the approval of State Steering Committee /

State Empowered Committee.

NCSCM,

OSDMA and

WBSEDCL

and any other

PEA as agreed

with the

World Bank

A Up to

US$300,000


B Above

US$300,000

and below

US$3

million

Entire procurement including approval and award

will be the responsibility of the PEA. However,

concurrence on the BER will be needed from the


C Above

US$3million

Procurement handled by PEA; but the BER to be

approved by Steering Committee through the


All Other

PEA

A Up to

US$30,000

using

shopping

procedures


B Above

US$30,000

Will be procured by SPMU/NPMU.


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Table 3.5: Responsibility Matrix for Goods and Civil works for PEA by NPMU/SPMU

S.no Activities In case the procurement

is by NPMU/SPMU for

PEA

In case the procurement is by

PEA

Organizational Entity Organizational Entity

NPMU/S

PMU

PEA NPMU/SPMU PEA

1 Assessment of requirement P S P

2 Preparation of technical

specification P P

3 Deciding on the Mode of

Procurement P P

4 Preparation of Bid

documents P S P

5 Advertisement P P

6 Sale of Bid documents P P

7 Receipt of Bids P P

8 Evaluation of bids P S S (if Estimated Cost

> US$ 300,000) P

9 Sanction of award As per Delegation of

Powers

As per Delegation of Powers

10 Award of contract P S (If Bid Price >

US$300,000) P

11 Signing of contract S P S P

12 Supervision of the contract S P P

13 Recommendation for release

of Payment p P

14 Release of the Payment to

the Vendor P P

15 Prior review approvals and

NOL from the World Bank

P P S

3.4 THRESHOLDS FOR PROCUREMENT METHODS

The following tables 3.6 and 3.7 give the thresholds for Procurement Method for Civil

Works and Goods


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Table 3.6: Thresholds for Procurement Methods -Civil Works

Expenditure

Category

Procurement Method Value (threshold) per contract*

Civil Works and

Supply and

Installation

International

Competitive Bidding

(ICB)

National Competitive

Bidding (NCB)

Shopping

Force Account

Civil works estimated to cost more than US$

10.0 million equivalent

Civil works estimated to cost more than US$

100,00021

and less than or equal to US$ 10.0

million equivalent

Civil works estimated to cost the equivalent

of US$ 100,00022

or less

Wherever agreed in the Procurement Plan

and performance/productivity standards will

be agreed with the World Bank before

commencement of work

Table 3.7: Thresholds for Procurement Methods -Goods

Procurement of

Goods

Procurement Method Value (threshold) per contract

Goods/ Equipment/

Machines

International

Competitive Bidding

(ICB)

National Competitive

Bidding (NCB)

Shopping

Direct Contracting

Contracts estimated to cost more than

US$ 3 million23

equivalent

Contracts estimated to cost more than

US$ 1000,00024

and less than or equal to

US$ 3 million25

equivalent

Contracts estimated to cost less than or

equal to US$ 100,00026

equivalent

As agreed in the procurement plan

21Revised from US$30,000 to US$50000 w.e.f. 13 June 2013, and to US$ 100,000w.e.f. 13 June 2013 22Revised from US$30,000 to US$50000 w. e. f. 27 August 2012, and to US$100,000 w.e.f. 13 June 2013 23

Revised from US$200,000 toUS$500,000 w. e. f. 27 August 2012, and to US$3 million w.e.f. 13 June 2013 24

Revised from US$20,000 to US$30000 w. e. f. 27 August 2012, and to US$100,000 w.e.f. 13 June 2013 25

Revised from US$200,000 to US$500,000 w. e. f. 27 August 2012, and to US$3 million w.e.f. 13 June 2013 26

Revised from US$20,000 to US$30,000 w. e. f. 27 August 2012, and to US$100,000 w.e.f. 13 June 2013


23 of 132

3.5 BIDDING DOCUMENTS TO BE USED

The Standard Bidding documents of the World Bank as agreed with the Government

of India Task Force (and as amended from time to time) for all procurement under

NCB will be used. For ICB/LIB contracts only World Bank’s Standard Bidding

Documents (SBDs) will be used. Following bidding documents will be used for

procurement of goods and works:

Table 3.8: List of Bidding Documents to be used in the Project

S.no Particulars Document to be used

1 Contract for works valued less than equivalent of

US$ 100,00027

each - under NS procedures. W5

2 Contract for works beyond US$ 100,000 and up to

US$10Million under NCB procedures W2

3 Contract for works beyond US$D 10 million ICB using World

Bank’s SBD

4 Contract for goods valued less than equivalent of

US$ 30,00028

following NS procedures

E5 with provision for

local advertising29

.

5 Contract for goods beyond US$30,000 and valued

less than equivalent of US$ 100,00030

following NS

procedures

Modified E5

approved by the

World Bank

6 Contract for goods beyond US$ 100,00031

and up to

US$ 3 million32

following NCB procedures. E1

7 Contract for goods beyond US$ 3 million following

ICB procedures

ICB using World

Bank’s SBD

3.6 THRESHOLDS FOR PRIOR REVIEW BY THE WORLD BANK33

3.6.1 In case of Civil Works and Goods the following contracts shall be subject to prior

review by the World Bank.

All Works, Turn-keys, and Supply and Installation costing US$10

million and above will be subject to prior review. Direct Contracting in

excess of US$20,000 will be subject to prior review by the World Bank.

27

Revised from US$30,000 to US$50,000 w. e. f. 27 August 2012, and to US$100,000 w.e.f. 13 June 2013 28

Revised from US$20,000 to US$30000 w. e. f. 27 August 2012 29

Inserted w.e.f. 13 June 2013 30

Inserted w.e.f. 13 June 2013 31

Revised from US$20,000 to US$30,000 w. e. f. 27 August 2012, and to US$100,000 w.e.f. 13 June 2013 32

Revised from US$200,000 toUS$500,000 w. e. f. 27 August 2012, and to US$3 million w.e.f. 13 June 2013

33The prior review thresholds were revised w. e. f. 27 August 2012. The earlier prior review thresholds for

goods and works were as “All ICB contracts, if any and the first NCB contract of works and goods from MOEF

and each participating state and subsequent contracts above US $ 500,000 for works and US $ 200,000 and

above for goods; and all contracts irrespective of value awarded on Direct Contracting method will be subject to

prior review by the World Bank”.


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All procurement for Goods, IT Systems, and Non-Consulting Services

costing US$1 million and above will be subject to prior review by the World

Bank.

Prior review would be at the following stages:

o Draft Bidding document

o Minutes of Pre Bid conference for information and comments if any

o Amendment to Bidding document

o Bid Evaluation Report and recommendation to award contract

o Final signed contract with check list for World Bank’s record and

allotment of WBR number

o The amendments for increasing the cost beyond 15% of original

value or extension of time shall also be subject to World Bank’s prior

review. Such amendments shall be submitted to the World Bank for

prior review before the variation order is issued by which contract

value will exceed by 15 % or time extension is granted.

3.6.2 In case of Consultancy Services, the following contracts shall be subject to prior

review by the World Bank.

First contract of any value from NPMU or SPMUs; subsequent contract

valued over US$ 500,000 equivalent for firms including NGOs, and above

US$200,000 equivalent for individuals; all contracts to be awarded on single

source selection basis having value in excess of 20,000 USD, will be subject

to prior review by the World Bank. Selections and contract awards to hire

Project Director, procurement consultants, inspection agents and legal

advisors are subject to prior review, irrespective of the contract value.

Prior review would be at the following stages:

o Terms of Reference;

o Short Listing; draft RFP and cost estimate [all together].

o Technical Evaluation report

o Combined evaluation report for information and comments if any.

o Minutes of Negotiation and draft initialed negotiated contract; and

o Amendments to the contracts, as applicable.

3.6.3 The summary of thresholds limits for Goods, Works and Consultancy is enclosed vide

Table 3.9.


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Table 3.9: Revised Procurement Thresholds for India ICZM Project

(Effective June 13, 2013) 1.

Category Method Value

threshold for

applicability

Prior

Review

Threshold

Remarks

Goods and

Equipment

ICB >$ 3 million >$ 1 million -

NCB <$ 3 million and

>$ 100,000

>$ 1 million -

Shopping by

SPMU/NPMU

<$ 100,000 and

>$ 30,000

NA No prior review needed as the upper

limit is $100,000 for using shopping by

SPMU or NPMU.

Shopping by

PEAs

<$ 30,000 NA No prior review needed as the upper


PEAs.

LIB or Direct

Contracting

(DC)

No threshold >$ 20,000 All cases subject to applicable

conditions. All cases of DC for

amounts above $20,000 will need prior

review by Bank.

Works;

Supply and

Installation

ICB >$ 20 Million >$ 10 million -

NCB <$20 Million

and >$100,000

>$ 10 million -

Shopping by

SPMU/NPMU

<$ 100,000 and

>$ 50,000

NA No prior review needed as the upper


SPMU or NPMU.

Shopping by

PEAs

<$ 50,000 NA No prior review needed as the upper


PEAs.

Force Account No Threshold - Only with prior agreement with the

World Bank.

Direct

Contracting

(DC)

No Threshold >$ 50,000 All cases subject to applicable

conditions. All cases of DC for

amounts above $50,000 will need prior

review by Bank.

Services QCBS or QBS

or FBS or

LCS

No Threshold >$ 600,000 Terms of Reference (ToR) of all

consultancies for an amount above

US$20,000 will need to be cleared with

the World Bank.

Short list of consultants for services,

<$800,000 per contract may comprise

entirely of national consultants.

CQS <$ 100,000 NA

Individual

Consultants

No Threshold >$ 50,000

Single Source

Selection

(SSS)

No threshold. >$ 20,000 All cases subject to applicable

conditions. ToR for all assignments

using SSS, irrespective of value, will

need to be cleared with the World

Bank.


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3.8 PROCUREMENT STAFF AND THEIR CAPACITIES

3.8.1 In the procurement process there is a substantial involvement of the procurement staff

of NPMU/SPMU. The NPMU and SPMU will be supported by Procurement and

Financial Management support consultant with one procurement specialist and two

procurement assistants.

3.8.2 Further the NPMU and SPMUs will have at least one procurement officer. These staff

will be adequately trained in World Bank’s procurement procedures at the

Administrative Staff College of India (ASCI), Hyderabad or the National Institute of

Finance Management (NIFM), New Delhi.

3.8.3 The TOR for Procurement staff will be agreed with World Bank.

3.9 FORCE ACCOUNT

3.9.1 Restoration of cultural properties by the Department of Culture in Orissa, where the

expertise for architectural restoration is not available in the open market; coral

transplantation activities in Gujarat by the Gujarat Environment and Ecology

Research Foundation and the Marine National Park, where again the expertise is not

available in the open market; and mangrove plantation in uninhabited islands and in

villages where there is no active or effective community based organization, in

Gujarat, Orissa and West Bengal will be implemented using force account.

3.9.2 The DPRs describe the work items (BOQ) to be executed following the force account.

The SPMU will submit the appropriate productivity standards, internal controls and

linkages to the disbursement for each activity listed in the procurement plan for the

World Bank’s clearance before commencement of work.

3.9.3 The NPMU and SPMUs will hire an independent monitoring consultant for the

project, which will include special audit for force account. The independent

monitoring consultants will provide reports on expenditures incurred, asset

verification, and technical quality of outputs. These, along with external and internal

audit reports will be relied upon and/or triangulated for post-review of activities

undertaken using force account methods.

3.9.4 Satellite Imageries will be procured from the National Remote Sensing Agency

(NRSA) or the National Remote Sensing Corporation (NRSC) using force account

with effect from 01 April 2013 as a consequence of adopting World Bank

Procurement Guidelines of January 2011 replacing the use of said Guidelines of 2004

(revised up to October 2006). However, the specific case of ineligibility of purchase

of satellite imageries from National Remote Sensing Agency (NRSA) that was

identified during project preparation remains valid for the duration up to March 2013.


27 of 132

3.10 COMMUNITY PARTCIPATION IN PROCUREMENT

3.10.1 In addition to the procurement to be under taken by PEAs and SPMU, there is

community participation in procurement for Entry point activities, livelihood

activities and plantation. For community works, it is proposed that

In case of mangroves plantation: The community will undertake the work

themselves.

In case of Entry Point Activities and work of livelihood enhancement: The

communities can undertake the works themselves or invite a minimum of three

quotations from the qualified contractors.

3.10.2 Before the funds are released to the community an MOU will be signed between

implementing agencies and communities to undertake works.

3.10.3 A separate Community Procurement Manual has been prepared for the Project which

has already been approved by the World Bank. All community procurement in the

Project will be as per details and procedures of such approved Community

Procurement Manual.

3.11 National Competitive Bidding

3.11.1 NCB will be conducted in accordance with paragraphs 3.3 and 3.4 of the World Bank

Procurement Guidelines and the following provisions:

(a) Only the model bidding documents for NCB agreed with the GOI Task Force (and

as amended from time to time) shall be used for bidding;

(b) Invitations to bid shall be advertised in at least one widely circulated national

daily newspaper, at least 30 days prior to the deadline for the submission of bids;

(c) No special preference will be accorded to any bidder either for price or for other

terms and conditions when competing with foreign bidders, state-owned

enterprises, small-scale enterprises or enterprises from any given state;

(d) Except with the prior concurrence of the World Bank, there shall be no

negotiation of price with the bidders, even with the lowest evaluated bidder;

(e) Extension of bid validity shall not be allowed without the prior concurrence of the

World Bank for the first request for extension if it is longer than four weeks; and

for all subsequent requests for extension irrespective of the period - such

concurrence will be considered by the World Bank only in cases of Force

Majeure and circumstances beyond the control of the Purchaser/Employer;

(f) Re-bidding shall not be carried out without the prior concurrence of the World

Bank. The system of rejecting bids outside a pre-determined margin or bracket of

prices shall not be used in the project;


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(g) Rate contracts entered into by DGS&D will not be acceptable as a substitute for

NCB procedures. Such contracts will be acceptable however for any procurement

under Shopping procedures; and

(h) Two or three envelop system shall not be used.

3.12 POST REVIEW

3.12.1 All contracts not covered under prior review will be subject to post award review. The

post review will be conducted as part of supervision missions or review by

consultants to be appointed by the by World Bank.

3.13 PROCUREMENT MONITORING SYSTEM

3.13.1 As a part of the PMS, the NPMU/SPMUs/PEAs shall maintain the following two

registers recording the pre-award and post-award stages:

(i) Tender/ Proposal Register:

To monitor the various stages of the tender process the award of the contract. This

register shall have separate folio for each tender and proposal and shall contain the

estimated and actual dates of performing various stages of tender/ proposal. (Refer

Annexure 1 and 2 for goods a works and consultants respectively).

(ii) Contract Register

To monitor the status of each contract with respect to contracted value, amount

invoiced and amount paid till the completion of the contract. (Refer Annexure 3

and 4 for goods and work and consultants respectively).

The contract details shall be captured from the tender/ proposal register

and actual payment details shall be captured from the Cash Books.

These registers shall form the basis for preparation of procurement

management reports discussed later in this section.

3.13.2 Revision of the estimated dates: The dates for the pre award and post award

activities shall be projected at the time the preparation of the procurement plan.

However during the process of the actual award the contract, the activities may get

delayed. This delay in the activities may necessitate the revision of the original dates.

The revised dates would be entered in the tender or the “proposal registers” and

update procurement activity schedule.

3.13.3 Procurement Management Reports (PMRs).The end of each quarter, the PEA shall

generate the PMRs. The basic source for generating the PMRs shall be tender

/proposal register and the contract register maintained at the PEA. The PEA shall

forward a copy of PMRs to NPMU/SPMU for consolidation.


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CHAPTER 4

PROCUREMENT OF GOODS,WORKS AND NON-CONSULTING SERVICES34

4 Procurement Processes

4.1 PROCUREMENT PLAN

The Procurement Plan for the project life cycle has been prepared and agreed with the

World Bank. Procurement Plan is a tool for proper monitoring and execution of

procurement activities. Procurement planning and its execution is therefore an integral

part of project implementation and monitoring, which must be done and reviewed

periodically to anchor the project over its life.

4.2 PROCUREMENT PROCEDURES

Procurement procedure/ guidelines are a set of general steps in which purchase

transaction is carried through from inception to its conclusion. These steps together

form the purchase policy of the project.

The procurement procedure/ guidelines broadly consist of the following activities;

1. Assessment of requirement

2. Deciding procurement strategy

3. Mode of procurement

4. Preparation of tender document

5. Advertisement of the tender

6. Issue of tender documents

7. Opening of the tenders

8. Evaluation of the tenders

9. Award of contract

10. Disclosure

11. Quality Assurance

12. Notification of delivery to consignee and receipt of consignment

13. Storage

14. Resolution of disputes, if any

15. Laws governing the contract

16. Arbitration

17. Insurance

18. Patent rights

19. Force Majeure

20. Complaint redress mechanism

34

Non-consulting services are defined as services for which the physical aspects of the activity predominate.

These are bid and contracted on the basis of performance of a measurable physical output, and for which

performance standards can be clearly identified and consistently applied. Some examples are taxi services,

housekeeping services, security services, etc. Procurement methods applicable for Goods Procurement are

applicable to non-consulting services.


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21. Procurement audit

22. Record keeping

4.3 DECIDING PROCUREMENT STRATEGY

The procurement strategy should cover;

Key objectives of the procurement for the project;

Chosen procurement option;

Chosen procurement route (open or restricted as allowed by the procurement

manual)

Key milestones (check that enough time will be allowed for various steps)

Key documents e.g. requirements, specifications, bidding documents etc.

Key factors influencing the procurement strategy relate to the degree of complexity,

innovation and uncertainty about the requirement, together with the time needed to

achieve a successful outcome.

4.4 MODE OF PROCUREMENT

The methods of procurement to be followed are:

A) International Competitive Bidding (ICB)

B) National Competitive Bidding (NCB)

C) Limited International Bidding (LIB)

D) Shopping

E) Single tender/ Direct Contracting

F) Force Account

A) International Competitive Bidding (ICB)

This method is generally adopted where the supplies need import and/ or foreign

firms are expected to participate irrespective of the value. This method is to be

adopted where the estimated cost of the procurement of works is more than US$ 10

million and more than US$ 3 million35

equivalent for goods.

Steps to be followed are:

(i) Apart from wide publicity nationally, Invitation for Bids (IFB) shall

also be forwarded to embassies and trade representatives of countries

of likely suppliers/ contractors of the goods and works and also to

those who have expressed interest in response to the general

procurement notice.

(ii) Invitation for Bids shall also be published in UNDB, dgMarket,

National Newspapers and project website.

(iii) Use of standard bid documents of the World Bank.

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June 2013


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(iv) Sale of bid documents should start only after publication of invitation

for bids in newspapers and UNDB/ dgMarket.

(v) Bidding period shall be 45 to 90 days from the date of start of the sale

of bid documents.

(vi) Domestic preference shall be allowed to domestic

manufacturers/contractors with respect to foreign

manufacturers/contractors as per procedure mentioned in the bid

documents.

(vii) Bid opening, bid evaluation, notification & publishing of award of

contract, complaint redress, etc., as described in the following

paragraphs.

B) National Competitive Bidding (NCB)

i) NCB is the competitive bidding procedure normally used for public

procurement in the country and may be the most efficient and

economic way of procuring goods or works, by their nature and scope.

The procedures shall provide for adequate competition in order to

ensure reasonable prices. The method to be used in the evaluation of

tenders and the award of contracts shall be made known to all bidders

and not be applied arbitrarily.

ii) NCB will be adopted normally where the contract value is less than the

equivalent of US$ 10 million and above US$ 100,00036

for works and

is less than the equivalent of US$ 3 million37

and above US$ 100,00038

for Goods.

iii) Various steps involved in procurement under NCB have been

enumerated in the subsequent paragraphs.

C) Limited International Bidding (LIB)

Limited International Bidding (LIB) is essentially ICB by direct invitation

without open advertisement. It may be an appropriate method of procurement

where (a) there are only a limited number of suppliers, or (b) other exceptional

reasons may justify departure from full ICB procedures. Under LIB, borrowers

shall seek bids from a list of potential suppliers broad enough to assure

competitive prices, such list to include all suppliers all over the world.

Domestic preference is not applicable in the evaluation of bids under LIB. In

all respects other than advertisement and preferences, ICB procedures shall

apply, including the publication of award of contract in UNDB online and in

dgMarket and use of the World Banks Standard Bidding documents.

D) Shopping

Shopping procedure is adopted where the estimated cost of procurement is less

than US$ 100,000 39

in case of Works and US$ 10000040

in case of goods. The

following considerations should be kept in view for adopting this procedure;

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June 2013 38

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a. Shopping is a procurement method based on comparing price

quotations obtained from several national/ international suppliers/ contractors,

usually at least three to ensure competitive prices. Under international

shopping quotations should be solicited from at least three suppliers in two

different countries. Quotes obtained from a manufacturer and two of its

dealers for the same item will not be considered as separate quotations.

b. It is an appropriate method for procuring readily available off-the-shelf

goods or goods of standard specifications, commodities and works that are

small in value and are ordinarily available from more than one source.

d. Approval of competent authority may be obtained for items of goods to

be purchased along with specifications or civil works to be constructed/

renovated/ repaired along with specifications, estimated costs. It is a good

practice to identify upfront the agencies from whom quotations should be

invited.

e. The requests for quotations shall contain the description, specification,

quantity of the goods, terms of delivery of goods or description of works as

well as desired completion period and place of works. If the quotations are

called for more than one item/work, it should also be indicated whether the

evaluation would be for each item or for each civil work or as a package of all

items/works together.

f. Quotations could also be obtained by telex or facsimile. The terms of

the accepted offer shall be incorporated in a purchase order or brief contract.

g. Rate contracts finalized by the Directorate General of Supplies &

Disposals (DGS&D) will be acceptable for any procurement under shopping.

h. State Government rate contracts, if any, shall be treated as one of the

three quotations in the shopping process.

i. If the Borrower has been unable to obtain at least three quotations, it

shall provide the World Bank with the reasons and justification why no other

competitive method could be considered and obtain a no objection before

proceeding on the basis of the only responses already received.

Following points should always be mentioned in the letter of inviting

quotations.

Calling Quotations

Give description, specifications and quantity.

The request for quotation may include, if needed, the required

minimum qualification of the bidder (such as license to execute the

work under consideration, or certificate of legally valid agency of the

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manufacturer of an equipment); but such request will be kept at the

minimum.

Say that the contract shall be for the full quantity of each item.

All duties, taxes and other levies payable on the raw materials and

components shall be included in the total price.

Sales tax in connection with the sale shall be shown separately.

The rates quoted by the bidder shall be fixed for the duration of the

contract and shall not be subject to adjustment on any account.

The Prices shall be quoted in Indian Rupees only.

Each bidder shall submit only one quotation.

Quotation shall remain valid for a period not less than 15 days after

the deadline date specified for submission.

Warranty and maintenance obligations will be clearly defined.

Sales tax in connection with sale of goods shall not be taken into

account in evaluation.

Evaluation of Quotations

The Purchaser will evaluate and compare the quotations determined

to be substantially responsive i.e. the quotations which conform to

the laid down terms & conditions, and specifications.

The Quotations would be evaluated for the entire item together or

would be evaluated separately for each item as defined in the request

for quotation.

Award of contract

The Purchaser will award the contract to the bidder whose quotation

has been determined to be substantially responsive and who has

offered the lowest evaluated quotation price.

Purchase order should include:

Description, specification, model number quoted by the firm

and quantity along with price.

Delivery period.

Terms of delivery i.e. free on rail (f.o.r.) station of dispatch or

free delivery to the consignee.

Payment terms.

E) Single Tender/ Direct Contracting for Goods

The procedure for Direct Contracting may be adopted if any one of the

following conditions is met. The value of each contract for such procurement

should not exceed the limits prescribed previous chapter.

(i) The single tender system may be adopted in case of articles including

equipment, which are specifically certified as of proprietary in nature, or

where only a particular firm is the manufacturer of the articles demanded

or in case of extreme emergency.

(ii) The single tender system without competition shall be an appropriate

method under the following circumstances:


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Extension of existing contracts for goods or works awarded with the

prescribed procedures, justifiable on economic grounds;

Standardization of equipment or spare parts to be compatible with

existing equipment may justify additional purchases from the

original supplier; and

Need for early delivery to avoid costly delays.

All direct contracting will be prior reviewed by the World Bank.

F) Force Account

Force Account, which are works such as construction and installation of

equipment and non-consulting services carried out by a government

department of the Borrower’s country using its own personnel and

equipment,41

may be the only practical method of procurement under specific

circumstances. The use of Force Account requires that the Borrower sets

maximum aggregate amounts for the use of Force Account, to which the

World Bank shall give its no objection, and applies the same rigorous quality

checks and inspection as for contracts awarded to third parties. Force Account

shall be justified and may only be used, after World Bank no objection, under

any of the following circumstances:

(a) Quantities of construction and installation works that are involved

cannot be defined in advance;

(b) Construction and installation works are small and scattered or in

remote locations for which qualified construction firms are unlikely to

bid at reasonable prices;

(c) Construction and installation works are required to be carried out

without disrupting ongoing operations;

(d) Risks of unavoidable work interruption are better borne by the

Borrower than by a contractor;

(e) Specialized non-consulting services such as aerial surveys and

mapping, as a matter of the Country’s law or official regulations for

consideration such as national security, can only be carried out by

specialized branches of the government; and/or

(f) Urgent repairs to prevent further damages, requiring prompt attention,

or works to be carried out in conflict-affected areas where private firms

may not be interested.

41

A government-owned construction unit that is not managerially, legally, or financially autonomous shall be

considered a Force Account unit. "Force Account” is otherwise known as “direct labor”, “departmental

forces”, or “direct work”.


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4.5 PREPARATION OF TENDER DOCUMENTS

4.5.1 For procurement to be carried out under this project, the GOI Task Force approved

standard bidding documents of the World Bank projects, as amended from time to

time for works/goods will be used under NCB. For ICB, the World Bank’s standard

bidding documents will be used. Sale of tender documents should begin only after the

publication of notification for tender in newspapers. The tender documents shall

furnish all information necessary for a prospective bidder to prepare a tender for the

goods and/ or works to be provided. Tender documents should be made available to

all those who request for them regardless of registration status and they should be

allowed to bid. However, the request should be in writing along with the requisite fee

of the tender/bid, if any.

4.5.2 The bid/tender document should invariably contain the following sections to make it,

self-explanatory and some of the important clauses are elaborated in the following

paragraphs:

Invitation for bids IFB)

Instructions to bidders (ITB)

General terms & conditions

Contract data including bill / schedule of quantities (BOQ)

Award criteria

Notification of award

Execution of contract

Quality control

Payment terms

Taxes and duties

Completion certificate

Warranty/ defect liability period

Drawings

Dispute resolution

Arbitration

Force majeure

4.5.3 Bill of quantities (BOQ) or Schedule of Requirement will indicate the description of

items/works to be provided along with quantities and the phased manner (if

necessary) in which the goods/works are required to be delivered or constructed.

4.5.4 The formats of Bidding Documents of World Bank which shall be used for the

implementation of the project are listed in Table 3.8.

4.6 INVITATION FOR BIDS (IFB)

4.6.1 At the start of the project a general procurement notice (GPN) will be issued in

national newspapers and UNDB/dgMarket indicating the items/services to be

procured under ICB and that the prospective bidders/tenderers should be on lookout

for the specific invitation for bids.

4.6.2 Specific invitation for bids (IFB) should provide a brief description of goods/works,

very important contract conditions, source of financing of the project, eligibility


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requirements, time and place, full office address along with telephone/fax number and

email address, if any, for submission of applications/bids, wherefrom bid documents

can be obtained. Contractors should be made responsible for all materials including

cement and steel without having to rely on departmental supplies. Format of IFB to be

adopted is given vide Enclosure 1.

4.6.3 Notification/ Advertisement:

Timely notification of bidding opportunities is essential in competitive bidding:

Invitation to bid shall be published in daily newspapers with wide circulation

all over India, at least in one English national daily newspaper and in one

regional language daily newspaper. If the advertisement is for more than one

item, it should also be indicated whether the evaluation would be item wise or

as a package. In case of IFB for ICB, the notification shall also be published

in the ‘United Nation’s Business Development’ (UNDB) and dgMarket online

and forwarded to embassies and trade representatives of countries of likely

suppliers of goods and also to those who have expressed interest in response

to the GPN. The bidders shall be allowed the option to submit the bids for any

one or more items/ schedules specified in the ‘Schedule of Requirements’ and

to offer discounts for combined schedules/ items of similar nature. The

advertisement should also be placed at the project website. The Notification/

Advertisement should also be published in the Indian Trade Journal

(published from Kolkata) in addition to the website and national newspaper

etc. as mentioned above.

If it is a condition in the invitation for tenders that earnest money/ bid security

is to be deposited by the supplier/ contractor, the bid of a supplier/ contractor

not complying with this requirement shall be outright rejected. Mistakes (in

case of bank guarantees), miscalculations, submission of copies of instrument

of bid security instead of the original will result in rejection of the bid/ tender.

In a package, the earnest money/ bid security should be indicated taking into

account all items forming the package. This cannot be changed later on. Once

it is decided that the contract shall be for a package, the earnest money/ bid

security for that package shall be indicated and the same cannot be changed

according to each item.

The last date for receipt of tender shall be the day following the date for

closure of the sale of bid documents. The last date and time of sale and receipt

of bid/ tender documents should be clearly indicated in the notification/

advertisement.

Tender sale period shall be between 30 to 60 days for NCB and 45 to 90 days

for ICB, from the date of start of sale of bid/ tender documents.

Tenders may be sold from different places but bid/ tender must be received at

one place only, to avoid problems arising out of late/ delayed tender

submission. Tenders/ bids should normally be opened immediately after the

deadline of time fixed for submission on the same day.


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The advertisement shall clearly state the name, address, telephone/ fax number

and e-mail address of the contact person for seeking clarifications if any, and

the date, time and place of submission of bids/ tenders.

The advertisement shall also indicate clearly the sources of funds wherefrom

the procurement will be funded.

The key dates should not be falling on government/ public holidays. If the

date of opening of bids/ tenders is declared a government/ public holiday, the

next working day shall be the date of bid opening at the appointed time.

4.7 INSTRUCTIONS TO BIDDERS (ITB)

4.7.1 In this section various procedures to be followed in the selection of the bidders and

precautions to be taken by them are indicated under following heads;

Scope of work

Sources of funds

Eligibility criteria

Pre-bid conference

Qualification of bidders

Earnest Money

Bid price

Submission of bids

Bid Security

Validity of bids submitted

Opening of bids

Evaluation of bids

Post qualification

Award of contract

Performance security

Fraud and Corruption

4.7.2 Important clauses are discussed in brief in the subsequent paragraphs.

4.8 CLARIFICATIONS ON TENDER/BID DOCUMENTS

4.8.1 Tender documents shall furnish clearly and precisely, the details of the work to be

carried out, the location of the work, the goods to be supplied, the place of delivery or

installation, the schedule of delivery or completion, specifications/ technical

specifications, minimum performance requirements, the warranty and maintenance

requirements, if any, and the method of evaluation. The basis for tender evaluation

and selection of the lowest technically suitable and evaluated tender shall be clearly

outlined in the instructions to bidders and/ or specifications. Any clarification asked

by the bidders will be consolidated and reply prepared without identifying the bidders


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name and reply sent to all prospective bidders well in advance of bid opening date

giving sufficient time to bidders to submit their bids.

4.8.2 Tender documents should state clearly whether the bid prices will be fixed or price

adjustment will be allowed to reflect any changes in major cost components of the

goods/ works.

4.9 STANDARDS AND TECHNICAL SPECIFICATIONS

4.9.1 The bid/ tender documents shall include generally accepted standards or technical

specifications. Unbiased technical specifications shall be prepared with no mention of

brand names and catalogue numbers by a committee of experts associating the trade

representative, if required. The functional performance, design, quality, packaging

and additional requirements should be clearly spelt out in the specifications. The

specifications should be generic and should not appear to favour a particular brand or

supplier.

4.9.2 Preparation of technical specifications, bill of quantities and civil drawings must be

completed before tendering. Specifications for the items to be procured should be

drawn up with clarity in every case. No deviations from the specifications after

opening of the tender should be allowed.

4.9.3 The major objectives of the specifications are:

To let the procurement cell/staff understand exactly the features required

in the item,

To let the supplier know exactly what the buyer wants,

To permit the easier, quicker and accurate verification of items upon

receipt.

4.10 VALIDITY OF TENDERS/BIDS

4.10.1 In the case of NCB/ICB a tender submitted by the bidder has to be valid for at least 90

days. In the case where W9 bid document is used the validity period is 45 days. In the

case of NS the bid validity period will be 45 days.

4.10.2 If the contract cannot be finalized within this period, the bidder has to be requested to

extend his validity period. Extension of bid validity will not be allowed without prior

concurrence of World Bank for all NCBs and ICBs (a) for the first request for

extension if it is longer than 4 weeks and; (b) for all subsequent requests for extension

irrespective of the period.

4.10.3 If extension of bid validity is required, it should be sought from all bidders before

stipulated expiration date (for valid bids only) and not from the lowest alone and the

World Bank should be notified accordingly. The extension shall be for the minimum

period required to complete the evaluation. In the case of fixed priced contracts, if the

award is delayed beyond initial validity period of the initial bid validity, the contract


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price will be adjusted by a factor (as also stipulated in the bid documents) specified

in the request for extension. The factor is based on the country’s projected inflation

for the period in question .The department inserts the value in the bid document prior

to issue.

4.11 EARNEST MONEY/ BID SECURITY

4.11.1 Earnest money (bid security) to be deposited by the bidders shall be for a specified

amount for each package/ schedule/ item as indicated in the bid/ tender document. It

shall normally be 2 to 2.5% of the estimated cost of goods and 1% of the estimated

cost of works rounded off to the nearest figure in hundreds/ thousands/ lakhs of

rupees. The earnest money shall be in the form of a demand draft/ banker’s cheque/

bank guarantee from a scheduled bank preferably having a branch at the place where

tenders are to be submitted, which should be valid for 45 days beyond the validity

period of the bid/tender. Fixed Deposit Receipts endorsed in favour of purchaser shall

also be acceptable.

4.11.2 The earnest money of unsuccessful bidders shall be refunded soon after the contract

signature. The earnest money shall be forfeited in the event of withdrawal of the

tender within the original validity, once submitted or in case a successful bidder fails

to execute necessary agreement within the period specified or for submitting false,

incorrect or misleading information in the bid. This will be in addition to the other

remedies available to the purchaser/ employer in terms of the tender documents.

4.12 PRE-BID CONFERENCE

4.12.1 A pre-bid conference (date/ venue to be indicated in the IFB published in newspapers

and bid/ tender document) may be arranged, if considered necessary, wherein

potential bidders may meet with the representatives of the implementing authority to

seek clarifications on the tender documents. The meeting should be scheduled at

about midpoint of bidding time.

4.12.2 Minutes of meeting indicating the responses given in the meeting (including an

explanation of query but without identifying the source of inquiry) shall be furnished

expeditiously to all those attending the meeting and subsequently to all the purchases

of bidding documents, after getting the same cleared with the World Bank. Any

modification of the bidding documents which may become necessary as a result of the

pre-bid meeting shall be made exclusively through issuance of corrigendum (after

getting the same cleared with the World Bank) and not through the minutes of the pre-

bid meeting.

4.12.3 Pre-bid conference should be arranged only in cases where it is considered necessary.

It should not be called by the PEA as a matter of routine. In the case where the ICB

procurement method is followed, pre-bid meeting is mandatory. In case where NCB

procurement method is followed pre-bid meeting is required only where W2 bid

document is used.


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4.13 TERMS AND MODE OF PAYMENT

4.13.1 Payment terms for ICB and NCB are already provided in the bidding documents and

should be followed as it is. In the case of shopping payment terms should be 90%

payment after delivery to the consignee and balance 10% after acceptance of the

goods or in accordance with the practices applicable to the specific goods and works.

Tender documents should specify the mode of payment and terms of payment

applicable and the type and number of documents required to be submitted by the

suppliers or contractors for claiming the payments.

4.14 CONDITIONS OF CONTRACT

4.14.1 The contract document shall clearly define the scope of work to be performed, the

goods to be supplied, the rights and obligations of the PEA and of the supplier or

contractor, and the functions and authority of the engineer, architect, or construction

manager, (if one is employed by the PEA) in the supervision and administration of the

contract. Special conditions related to specific item including the technical,

production and financial requirement should also be clearly specified in the tender

document.

4.15 ISSUE AND SUBMISSION OF TENDER/BIDDING DOCUMENTS

4.15.1 Tender/Bid documents shall be sold to any person who makes a request in writing and

deposits the required money. Sale of tender documents shall not be restricted on any

account. Tenders/Bidding documents will be sold till one day prior to the opening of

the tenders. Tender sale period shall be between 30 to 60 days for NCB and 45 to 90

days for ICB, from the date of start of sale of bid/ tender documents.

4.15.2 Bidders shall be permitted to deposit their bids on any day during the bidding period

either by post or in person. Bids shall be received only at one place (i.e. by the

authority inviting the Bids) and shall be kept in safe custody till the stipulated time of

opening.

4.16 TENDER OPENING

4.16.1 The time, date and venue for the tender opening shall be mentioned in the IFB and

bid/ tender documents. Bid/tender opening time shall be immediately after the

deadline for submission of tenders/ bids as discussed above. Last date of receipt of

bids and opening of Bids shall be the next day, following the close of sale of Bidding

Documents. If the day happens to be a holiday, the last date of receipt and opening of

bids shall be the next working day. The time of opening of bids shall be half an hour

after the time of closure of receipt of bids.

4.16.2 All bids received shall be opened in presence of bidder’s representatives who choose

to attend and shall sign a register evidencing their attendance.

4.16.3 All tenders received in time shall be opened. No bid shall be rejected at the time of

bid opening except for late tenders. Late tenders shall be returned to the bidders/

tenderers unopened.


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4.16.4 Envelopes marked “WITHDRAWAL” shall be opened first, and the name of the

bidder shall be read out. Bids for which acceptable notice of withdrawal has been

submitted shall not be opened. Subsequently all envelopes marked

“MODIFICATION” shall be opened and submission therein read out in appropriate

detail.

4.16.5 The bidder’s names, bid prices including any alternative Bid Price or deviations,

discounts, bid modification and withdrawals and the presence or absence of bid

security and such other details as considered appropriate shall be announced during

opening of bids in the meeting. All cuttings and /over writings observed in the Bid

Form and Price schedules shall be authenticated by the members of Bid Opening

Committee by encircling and initialing the cuttings/ over –writings.

4.16.6 No bid shall be rejected at the bid opening, except for late bids, which shall be

returned unopened to the bidder.

4.16.7 Bids and modifications that are not opened and read out at bid opening shall not be

considered further for evaluation, irrespective of the circumstances.

4.16.8 Spot comparative statement (minutes of bid opening) must be prepared by the bid/

tender opening official and should be signed. Sample format of minutes of the bid

opening committee is enclosed vide Enclosure 2.

4.17 CONFIDENTIALITY

4.17.1 After the public opening of tenders, information relating to the examination,

clarification, and evaluation of tenders and recommendations concerning awards shall

not be disclosed to bidders or other persons not officially concerned with this process

until the successful bidder is notified of the award of the contract.

4.18 EXAMINATION OF TENDERS/BIDS

4.18.1 The implementing agency shall ascertain whether the tenders;

Meet the eligibility requirements specified;

Have been properly signed by authorized signatory;

Have the bid validity as specified in the bid/ tender documents;

Are accompanied by the required earnest money valid for the period specified in

the tender document;

Have quoted for the entire schedule/ package and are in the required currency as

indicated in the bid document;

Are generally substantially responsive commercially and technically, to the tender

documents;

Have the necessary technical, production and financial capability to successfully

execute the contract. For ensuring financial capacity a minimum turnover

requirement may be indicated in bid/ tender document; and,

Are otherwise generally are in order.


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4.18.2 If the bidder/tenderer meets the above stipulations indicated in the bid documents, it is

determined as substantially responsive and is considered further for evaluation.

4.18.3 If a bid/tender is not substantially responsive, i.e., it contains material deviations from

or reservations to the terms, conditions and specifications specified in the tender

documents, it shall be considered as non-responsive and shall not be considered

further. The bidder shall neither be permitted to correct or withdraw material

derivations or reservations once tenders are opened; nor shall the purchaser/employer

make a reference to the bidders to get the infirmity in the tender corrected.

4.18.4 Historical data in relation to the tender, if not received along with the bid/tender, can

be requested from the bidder after opening of bids/ tenders and should be submitted

within a reasonable time span (say 7-10 working days).

4.19 TENDER EVALUATION AND COMPARISON

4.19.1 The purpose of tender evaluation is to determine substantially responsive tender with

the lowest evaluated cost, but not necessarily the lowest submitted price, which

should be recommended for award.

4.19.2 The bid/ tender price read out at the bid opening shall be adjusted at the time of

evaluation with correction for any arithmetical errors for the purpose of evaluation

with the concurrence of the bidder/ contractor. Where there is a discrepancy between

the rates in figures and in words, the rate in words will prevail. Where there is a

discrepancy between the unit and the line item total resulting from multiplying the

unit rate by the quantity, the unit rate will prevail.

4.19.3 Evaluation of tenders should be made strictly in terms of the provisions in the tender

documents to ensure compliance with the commercial and technical aspects.

4.19.4 Conditional discounts offered by the bidders shall not be taken into account for

evaluation.

4.19.5 The past performance of the suppliers/ contractors should be taken into account while

evaluating the tenders (this should also be indicated in bid document). However, past

performance of the suppliers/ contractors should be documented properly.

4.19.6 The purchaser shall prepare a detailed report on the evaluation and comparison of

tenders setting forth the specific reasons on which the recommendation is based for

the award of contract.

4.19.7 While making the recommendation for award of contract, last purchase price (LPP) of

the item(s), if available, will be considered for comparison.

4.19.8 Suggested format for preparation of bid evaluation report is enclosed vide Enclosure

3 and 4.

4.19.9 No preferential treatment should be given to any bidder or class of bidders either for

price or for condition unless specifically cleared with the World Bank and stipulated

in the Project Agreement. Any procedure under which bids above or below a pre–

determined assessment of bid values are automatically disqualified, is not applicable.


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4.19.10The evaluation will exclude and not take into account any allowance for price

adjustment during the period of execution of the contract.

4.19.11A bidder should not be required as a condition of award to undertake responsibilities

for work not stipulated in the specifications or otherwise to modify his bid.

4.20 NEGOTIATIONS

4.20.1 There should not be any negotiations either for price or terms and conditions of the

tender submitted.

4.21 POST-QUALIFICATION OF BIDDERS/TENDERERS

4.21.1 In case the pre-qualification of the bidders/ tenderers has been carried out, and the

tenders have been issued to the pre-qualified bidders, the tenders shall be

recommended for award on the basis of being lowest substantially responsive bids.

4.21.2 If the bidders have not been pre-qualified, the implementing agency shall determine

whether the bidder whose bid has been determined as lowest evaluated substantially

responsive, has the technical and production capabilities and financial resources to

effectively carry out the contract as offered in the bid/ tender. The criteria to be met

shall be set out in the tender documents, and if the bidder does not meet them, the bid/

tender shall be rejected. In such an event, the implementing agency shall make a

similar determination for the next lowest evaluated substantially responsive bidder/

tenderer and so on.

4.22 REJECTION OF ALL TENDERS

4.22.1 Tender documents usually provide that implementing agency may reject all tenders.

Rejection of all tenders is justified when none of the tenders are substantially

responsive. However, the lack of competition shall not be determined solely on the

basis of number of bids received. If all tenders are rejected, the implementing agency

shall review the causes justifying the rejection and consider making revisions to the

conditions of contract, or a combination of these, before inviting new tenders.

4.22.2 If the rejection is due to most or all of the tenders being non-responsive, fresh tenders

may be invited.

4.22.3 Rejection of all tenders and re-inviting new tenders, irrespective of value shall be

referred to the next higher authority for approval than the authority that approved the

issue of tender or to the head of the unit. Before re-inviting tenders the specifications

may be reviewed for revision, if any.

4.22.4 Rejection of tenders, irrespective of value, will require World Bank’s approval.


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4.23 REBIDDING

4.23.1 Rebidding can happen in following cases:-

No bids is received

All bids are to be rejected.

4.23.2 In case Regardless of the value, if all the bids are proposed to be rejected and re-

invited, the World Bank shall be consulted before such action is taken by sending the

information in the prescribed format for seeking World Bank’s clearance. Before

rejecting the bids, the implementing agency (NPMU/SPMU or PEA as applicable)

will first have to:

Update the estimates as per the current market rates for labour and

materials (cement/ steel etc.), actual leads of materials and construction

methodology proposed now.

After updating the implementing agency has to identify the item or items

and factors which contributed to the major variation over the updated

estimates and

Then seek a clarification including breakdowns of unit for the items and

factors so identified.

4.23.3 After receiving the reply the implementing agency has to evaluate and based on

judgment, reject if price is unjustified.

4.23.4 In case no bids are received, the Project Director is competent to approve the re-

invitation of the bids. The approval will be subject to bid inviting officer proposing a

request giving the reason for lack of response and proposed remedial measures

including any revision to the scope of the contract, etc.

4.23.5 The recommendation of the implementing agency will be send to the World Bank

within 2 weeks from communication of recommendation to the bid inviting officer.

4.24 PERFORMANCE SECURITY

4.24.1 Tender documents for works and supply of goods shall require performance security

in an amount sufficient to protect the interest of the implementing agency in case of

breach of contract by the contractor/ supplier. The performance security shall be in the

form of a bank guarantee or any other instrument acceptable to the purchaser and the

amount should be specified in the tender document.

4.24.2 The amount of performance security shall be 5 to 10% of the contract price, but

normally it should be 5% and should be valid till 28 days after the date of expiry of

defect liability period or the guarantee/ warranty period, as the case may be.

4.24.3 The performance security deposit shall be refunded within one month after the expiry

of guarantee/ warranty period or the defect liability period (as mentioned above).

4.24.4 The performance security shall be forfeited in case any terms and conditions of the

contract are infringed or the bidder fails to make complete supply satisfactorily or


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complete the work within the delivery / completion period agreed in the contract

without prejudice to the purchaser’s right to take further remedial actions in terms of

the contract and bidding documents which formed part of the contract.

4.25 RETENTION MONEY

4.25.1 In case of contracts for works, normally 5% of the contract price shall be deducted

from the bills towards retention money.

4.25.2 Half (50%) of the retention money shall be returned to the contractor after the

completion of the whole of the works and the balance 50% shall be returned to the

contractor after the expiry of the defects liability period along with the performance

security.

4.26 LIQUIDATED DAMAGES

4.26.1 Provisions for liquidated damages shall be included in the conditions of contract for

the delay in the delivery of goods or completion of works.

4.26.2 In the case of goods, the liquidated damages shall be calculated at the rate of 2% per

month of delay or part thereof.

4.26.3 In the case of works, the liquidated damages will be calculated at 0.05% of the

contract price per day.

4.26.4 In both the cases liquidated damages will be subject to a ceiling of 10% of the

contract price and shall be levied by way of pre-estimated damages and not by way of

penalty.

4.27 PRICE ADJUSTMENT

4.27.1 Bidding documents shall state either (i) bid price will be fixed; or (ii) that price

adjustment will be made to reflect any charges (upwards or downwards) in major cost

components of the contract such as materials, labour, POL(fuel & lubricants), plant

and machinery spares .

4.27.2 Bid adjustment clause shall be provided when the estimated value of work exceeds

US$ 1 million and period of completion of works or supply of goods is more than 18

months. The total percentage of materials, labour, POL (fuel & lubricants), plant and

machinery spares .components should be equal to “100”, in the formula.

4.27.3 The bidding documents for contracts of shorter duration may also include a similar

provision for price adjustment when future local or foreign inflation is expected to be

high. When the bid document says that the bid price is fixed then prices quoted by the

bidder shall be fixed during the bidders performance of the contract and not subject to


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variation on any account. In such cases, a bid submitted with an adjustable price

quotation will be treated as non –responsive and rejected.

4.27.4 Price adjustment clause shall be provided when total value of contract exceeds US$ 1

million and stipulated period of completion of works or supply of goods is more than

18 months. The total percentage of labour, materials and POL components shall be

100 in formula, if ‘R’ in the formula represents the work done. In such cases a bid

submitted with a fixed price quotation will not be rejected, but price adjustment shall

be treated as zero.

4.27.5 The contract price shall be adjusted for increase or decrease in the rates and price of

labour, materials, fuels and lubricants in accordance with following principles and

procedures and as per formula given in the bid document

4.27.6 The price adjustment shall apply for the works done from the start date given in the

contract data up to the end of initial intended completion date or extension granted by

the Engineer and shall not apply to the work carried out beyond the stipulated time for

reasons attributable to the contractor.

4.27.7 The price adjustment shall be determined during each quarter. Following expression

of meanings are assigned to the work done during each quarter.

R = Total value of work done during the quarter. It would include

the amount of secured advance for materials paid for (if any) during

the quarter, less the amount of the secured advance recovered, during

the quarter. It shall exclude value of works executed under variation

for which price adjustment shall be worked separately based on the

terms mutually agreed.

4.27.8 To the extent that full compensation for any rise or fall in costs to the contractor is not

covered by the provision of formula or other clauses of the contract, the unit rates and

prices included in the contract shall be deemed to include amounts to cover the

contingency of such other rise or fall in costs.

4.28 SUBCONTRACTING IN CIVIL WORKS

4.28.1 All bidders are required to indicate clearly in the bids, if they propose sub-contracting

elements of works amounting to more than 20 (twenty) percent of the Bid Price. For

each such proposal the qualification and experience of the identified sub –contractor

in relevant field shall be furnished along with the bid to enable the Employer to

satisfy himself about their qualification before agreeing for such sub-contracting and

inclusion in the contract.

4.28.2 The contractor shall not be required to obtain any consent of the Employer in respect

of following in the event of having furnished information under paragraph 4.28.1

above:

(a) The subcontracting any part of works for which the Sub-Contractor is named in

the contract;

(b) The provision of labour; and


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(c) The purchase of materials which are made in accordance with the standards

specified in the contract.

4.28.3 Beyond above, if the Contractor proposes subcontracting of any part of work during

execution of works, because of unforeseen circumstances to enable him to complete

the work as per terms of the contract, the following principles shall be followed by the

Engineer before agreeing to the proposal of contract:

- The contractor shall not sub-contract the whole of the works.

- The contractor shall not sub-contract any part of the work without the

consent of the engineer.

- The Engineer shall satisfy:

(a) Whether circumstances warrant such sub-contracting, and

(b) The sub–contractor so proposed possess the necessary experience,

qualification and equipment for the job proposed to be entrusted to

him in accordance with the quantum of work to be sub contracted.

(c) Any consent by the Engineer shall not relieve the contractor from

any liability or obligation under the contractor, and he shall be

responsible for the acts, defaults and neglects of his sub-contractor,

his agents or workmen as fully as if they were the acts, defaults or

neglects of the contractor, his agents or workmen. This should be

clarified to the contractor while conveying the acceptance of sub-

contract.

4.28.4 If payments are proposed to be made directly to the sub–contractor, this should be

agreed only subject to specific authorization by the prime contractor so that this

arrangement does not alter the contractor’s obligations.

4.29 BILL OF QUANTIITES (BOQ)

4.29.1 Bill of quantities format shall include description of items (with brief specification

and reference to Book of Specification where applicable), quantity, unit, rate (both in

figures and words) and amount.

4.29.2 Unit rates and prices shall be quoted by the Bidder in Indian Rupees. Amount shall be

worked out for the specified quantity at quoted unit rate and price. Where there is a

discrepancy between the rates in figures and words, the rates in words will govern.

Where there is a discrepancy between the unit rate and the line item total resulting

from multiplying the unit rate by quantity, the unit rate quoted shall govern.

4.29.3 Item for which no rate or price has been entered into by the Bidder will not be paid for

by the Employer when executed and shall be deemed covered by the other rates and

prices in the bill of quantities.

4.29.4 Bidders may quote speculative/ non-competitive prices for items with zero quantity in

BOQ as this will not affect the bid evaluation. Hence no item with nil quantity shall

be entered in the BOQ.

4.30 EXTENSION OF CONTRACT

4.30.1 Normally contract once awarded should not be extended. Under exceptional

circumstances, extension of existing contracts up to 15 percent of the original contract


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value may be considered; it is justifiable on grounds, subject to approval of the

competent authority as per delegation of powers and with the prior approval of the

World Bank.

4.30.2 Format for seeking the World Bank’s clearance is enclosed vide Enclosure 6.

4.31 FRAUD AND CORRUPTION

4.31.1 It is the World Bank’s policy to require that Borrowers (including beneficiaries of

World Bank loans), bidders, suppliers, contractors and their agents (whether declared

or not), sub-contractors, sub-consultants, service providers or suppliers, and any

personnel thereof, observe the highest standard of ethics during the procurement and

execution of the World Bank financed contracts. In pursuance of this policy, the

World Bank:

(a) Defines, for the purposes of this provision, the terms set forth below as follows:

(i) “corrupt practice” is the offering, giving, receiving, or soliciting, directly

or indirectly, of anything of value to influence improperly the actions of

another party;

(ii) “fraudulent practice” is any act or omission, including a misrepresentation,

that knowingly or recklessly misleads, or attempts to mislead, a party to

obtain a financial or other benefit or to avoid an obligation;

(iii) “collusive practice” is an arrangement between two or more parties

designed to achieve an improper purpose, including to influence

improperly the actions of another party;

(iv) “coercive practice” is impairing or harming, or threatening to impair or

harm, directly or indirectly, any party or the property of the party to

influence improperly the actions of a party;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering, or concealing of

evidence material to the investigation or making false statements to

investigators in order to materially impede a World Bank

investigation into allegations of a corrupt, fraudulent, coercive or

collusive practice; and/or threatening, harassing or intimidating any

party to prevent it from disclosing its knowledge of matters

relevant to the investigation or from pursuing the investigation, or

(bb) acts intended to materially impede the exercise of the World

Bank’s inspection and audit rights provided for under paragraph

4.31.1(e) below.

(b) Will reject a proposal for award if it determines that the bidder recommended

for award, or any of its personnel, or its agents, or its sub-consultants, sub-

contractors, service providers, suppliers and/or their employees, has, directly or

indirectly, engaged in corrupt, fraudulent, collusive, coercive, or obstructive

practices in competing for the contract in question;

(c) Will declare misprocurement and cancel the portion of the loan allocated to a

contract if it determines at any time that representatives of the Borrower or of a

recipient of any part of the proceeds of the loan engaged in corrupt, fraudulent,


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collusive, coercive, or obstructive practices during the procurement or the

implementation of the contract in question, without the Borrower having taken

timely and appropriate action satisfactory to the World Bank to address such

practices when they occur, including by failing to inform the World Bank in a

timely manner at the time they knew of the practices;

(d) Will sanction a firm or individual, at any time, in accordance with the prevailing

Bank’s sanctions procedures, including by publicly declaring such firm or

individual ineligible, either indefinitely or for a stated period of time: (i) to be

awarded a World Bank financed contract; and (ii) to be a nominated sub-

contractor, consultant, supplier, or service provider of an otherwise eligible firm

being awarded a World Bank financed contract;

(e) Will require that a clause be included in bidding documents and in contracts

financed by a World Bank loan, requiring bidders, suppliers and contractors, and

their sub-contractors, agents, personnel, consultants, service providers, or

suppliers, to permit the World Bank to inspect all accounts, records, and other

documents relating to the submission of bids and contract performance, and to

have them audited by auditors appointed by the World Bank; and

(f) Will require that, when a Borrower procures goods, works or non-consulting

services directly from a United Nations (UN) agency in accordance with

paragraph 3.10 of the World Bank Guidelines under an agreement signed

between the Borrower and the UN agency, the above provisions regarding

sanctions on fraud or corruption shall apply in their entirety to all suppliers,

contractors, service providers, consultants, sub-contractors or sub-consultants,

and their employees that signed contracts with the UN agency.

(g) As an exception to the foregoing, paragraphs 4.31.1(d) and (e) will not apply to

the UN agency and its employees, and paragraph 4.31.1(e) will not apply to the

contracts between the UN agency and its suppliers and service providers. In

such cases, the UN agencies will apply their own rules and regulations for

investigating allegations of fraud or corruption subject to such terms and

conditions as the World Bank and the UN agency may agree, including an

obligation to periodically inform the World Bank of the decisions and actions

taken. The World Bank retains the right to require the Borrower to invoke

remedies such as suspension or termination. UN agencies shall consult the

World Bank’s list of firms and individuals suspended or debarred. In the event a

UN agency signs a contract or purchase order with a firm or an individual

suspended or debarred by the World Bank, the World Bank will not finance the

related expenditures and will apply other remedies as appropriate.

4.31.2 With the specific agreement of the World Bank, NPMU/SPMU/PEA may introduce,

into bid forms for contracts financed by the World Bank, an undertaking of the bidder

to observe, in competing for and executing a contract, the India’s laws against fraud

and corruption (including bribery), as listed in the bidding documents. The World

Bank will accept the introduction of such undertaking at the request of the

Government of India, provided the arrangements governing such undertaking are

satisfactory to the World Bank.


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4.32 AWARD OF CONTRACT

4.32.1 Implementing agency shall award the contract, within the period of validity of

tenders, to the bidder who meets the tender conditions in all aspects, has the necessary

technical and production capabilities and financial resources and whose bid is

substantially responsive to the tender conditions and has offered the lowest evaluated

cost. The purchaser can, if so desired, depute a team of 3-4 officers to the premises of

manufacturer to whom the contract is proposed to be awarded to satisfy itself that the

manufacturer has the capability to produce the required quantity and also has the

necessary quality testing and assurance facilities to meet the required standards. Based

on the report of this committee, the purchaser may decide to award the contract to the

successful bidder offering the lowest and reasonable price after approval of the

competent authority.

4.32.2 Single bids should also be considered for award, if it is determined that publicity was

adequate, bid specifications/ conditions were not restrictive or unclear, and bid prices

are considered reasonable.

4.33 DISCLOSURE

4.33.1 For Central/State level procurements, information on pre-qualification of the

contractors and award of contract would be posted on the program website. In general

the following information should be put on the department’s website:

Making publicly available, all annual procurement schedules promptly after

finalization.

Posting all bidding documents and requests for proposals.

Making available to any member of the public, promptly upon request all

shortlist of consultants and in case of pre-qualification, list of pre-qualified

contractors and suppliers.

The information on pre-qualified applicants and award of contracts.

Posting annual progress and mid-term review reports of the project.

4.33.2 For State level procurements, the information would be shared with the public

through State websites.

4.34 QUALITY ASSURANCE

4.34.1 The inspection authority and procedure for sampling and testing should be clearly

specified in the tender document. The purchaser will also decide whether 100% pre-

dispatch inspection is required at the manufacturer’s premises, depending on the items

to be purchased. When a consignment is ready for dispatch, the supplier will inform

the purchaser that the consignment is ready for the testing. Purchaser will then instruct

the inspection agency to carry out the inspection. In other cases goods will be

inspected on arrival at purchaser’s premises for any possible damage/ defect either in

manufacture or in transit.

4.34.2 If the stores supplied do not meet the specifications and/ or the performance

requirement, these should not be accepted. If there are any disputes or doubts about


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the quality of the products, a procedure of resolution of dispute may be followed as

per the terms of the contract.

4.35 NOTIFICATION OF DELIVERY TO THE CONSIGNEE AND RECEIPT OF CONSIGNMENT

4.35.1 Notification of delivery or dispatch in regard to each and every consignment shall be

made by the supplier to the purchase officer. The supplier shall further supply to the

consignee a packing account quoting reference number and date of the contract/

supply order, date of dispatch of the stores. All packages, containers, bundles and

loose material part of each and every consignment shall be fully described in the

packing account and full details of the contents of the packages and quantities of

material(s) shall be given to enable the consignee to check the stores on arrival at

destination. The Railway Receipt (RR) \ Lorry Receipt (LR) \ Consignment Note

(CN) should be drawn in the name of the consignee and should be sent to the

consignee by registered post acknowledgement due or other fastest mode immediately

on dispatch of stores quoting the Number(s) and date(s) of the corresponding

Inspection Note(s) in relation to the stores covered by the said RR\ LR\ CN as the

case may be. The contractor shall bear and reimburse to the purchaser, demurrage

charges, if any, paid by the reasons of delay on the part of the supplier in forwarding

the RR\ LR\ CN to the consignee.

4.35.2 At the time of the delivery of the stores, the consignee should accept the stores on

“said to contain” basis and should issue a provisional receipt certificate in the

standard format. After opening the packages and detailed examination of the stores,

the consignee will issue the final acceptance certificate if he is satisfied with the

quality of the goods. Notwithstanding the pre-dispatch inspection of the goods/

services by the inspection agency, consignee has the right to further inspect and test

the goods but within a reasonable time. If the goods fail to meet the specifications

given in the contract, the same should be rejected and the supplier should be asked to

replace the goods or rectify the defects. Supplier shall not be allowed to remove

rejected goods until the supplier has deposited the payment received together with

other incidental charges such as freight, insurance, loading/ unloading charges etc. or

they have replaced rejected goods with serviceable goods.

4.36 STORAGE

4.36.1 As all the goods needed/ procured cannot be consumed at one point of time, storage of

goods is an inevitable process. Experience has demonstrated that properly packed

good quality items do not deteriorate if stored systematically in clean, dry and well

ventilated environment. Therefore, it is necessary to store the goods properly.

4.36.2 If quality assurance measures have been strictly followed during the manufacturing

process, the conditions of the warehousing and storage play a major role in ensuring

that quality goods reach final users in good condition. They should normally be left in

their original packaging during storage.

4.37 RESOLUTION OF DISPUTES

4.37.1 The dispute resolution methodology should be very clearly indicated in the contract

document. As far as possible, disputes may be resolved with mutual agreement


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between the purchaser and supplier/ contractor through alternate dispute resolution

methods to avoid going through arbitration and litigation stages.

4.37.2 There are a number of causes of disputes during the execution of contract. These may

involve for example:

Interpretation of the terms and conditions of the contract

Delay in delivery/ completion of the works

Delay in release of payments

Independent test results

Condition of the item on arrival at consignee’ end after delivery

Fixation of rate of the items, on account of variation in quantity of the

items of BOQ in civil works contract etc.

Design/ specification issues

4.37.3 It is also possible for a manufacturer to dispute a decision made by the inspection

agency regarding product packing or appearance or testing/ inspection result. In most

cases, manufacturers accept the results of independent laboratories and replace the

rejected stores. Procedures for dealing with such disputes should be indicated in the

contract.

4.38 APPLICABLE LAWS AND SETTLEMENT OF DISPUTES

4.38.1 The conditions of contract shall include provisions dealing with the applicable law

and the forum for the settlement of disputes. International commercial arbitration in a

neutral venue has practical advantages over other methods for the settlement of

disputes. Therefore, the World Bank requires that Borrowers use this type of

arbitration in contracts for the procurement of goods, works, and non-consulting

services unless the World Bank has specifically agreed to waive this requirement for

justified reasons such as equivalent national regulations and arbitration procedures, or

the contract has been awarded to a bidder from the Borrower’s country. The World

Bank shall not be named arbitrator or be asked to name an arbitrator.42

In case of

works contracts, supply and installation contracts, and single responsibility (including

turnkey) contracts, the dispute settlement provision shall include mechanisms such as

dispute review boards or adjudicators, which are designed to permit a speedier dispute

settlement.

42

It is understood, however, that officials of the International Centre for Settlement of Investment Disputes

(ICSID) shall remain free to name arbitrators in their capacity as ICSID officials.


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4.39 ARBITRATION

4.39.1 In cases of ICB/ NCB, the bid/ tender documents specify the procedure for

appointment of arbitrator and his replacement etc. and provisions laid down therein

should be followed. In other cases the following information should be suitably

incorporated in the request inviting the quotations to obtain the consent of the bidder/

tenderer to accept the arbitration clause.

4.39.2 In the event of any question, dispute or difference arising under the contract

conditions or any special conditions of contract, or in connection with the contract

(except as to any matters the decision of which is specially provided for by these or

the special conditions) the same shall be referred to the sole arbitration of an officer,

from the government department other than the department which decided the

contract, having sufficient knowledge of law, appointed to be the arbitrator by the

purchaser. The decision of the arbitrator shall be final and binding on both the parties

to this contract.

4.39.3 In the event of the arbitrator dying, neglecting or refusing to act or resigning or being

unable to act for any reason, it shall be lawful for the purchaser to appoint another

arbitrator in place of the outgoing arbitrator in the manner aforesaid,

4.39.4 It is further a term of the contract that no person other than the person appointed by

the purchaser as aforesaid should act as arbitrator and if for any reason that is not

possible, the matter is not to be referred to arbitration at all.

4.39.5 Arbitrator may, from time to time, with the consent of all parties to the contract

enlarge the time for making the award.

4.39.6 In pursuance of a reference, the assessment of the costs incidental to the reference and

award respectively shall be at the discretion of the arbitrator.

4.39.7 Subject to as aforesaid, the Arbitration and Reconciliation Act amended up to date

and the rules there under and any statutory modification thereof for the time being in

force shall be deemed to apply to the Arbitration proceedings under this clause.

4.39.8 The arbitrator shall be requested to give reasoned award.

4.39.9 The venue of arbitration shall be the place from which formal Acceptance of ender is

issued or such other place as the purchaser at his discretion may determine.

4.40 INSURANCE

4.40.1 The goods/ works under supply must be fully insured against any loss or damage

during transit or storage or during construction. Insurance shall be taken for 110% of

value of the contract.

4.41 PATENT RIGHTS

4.41.1 The supplier/ contractor should have proper and valid license/ right to the use of and/

or supply the product/ services for their design, material or manufacturing and its

patent, trademark or industrial design rights in the purchaser’s country. The supplier/

contractor should safeguard the interest of the purchaser from any third party claim


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towards the infringement of same and indemnify the purchaser. Provision should be

kept for the same in the contract.

4.42 FORCE MAJEURE

4.42.1 There could be circumstances/ events where the supplier/ contractor may not be in a

position, in spite of his best efforts, to meet the delivery/ completion schedule due to

events beyond their control and not foreseeable such as wars, or revolutions, fires,

floods, epidemics, natural calamities, quarantine restrictions and freight embargo etc.

In such cases suitable delivery extension based on merit of the case may be granted

for arranging the delivery of goods or completion of works. Also the supplier shall not

be made liable for forfeiture of performance security, liquidated damages or

termination of contract as per provisions made in the contract elsewhere. A suitable

clause may be provided in the contract to this effect.

4.43 COMPLAINT REDRESS MECHANISM (ALSO APPLICABLE TO PROCUREMENT OF SERVICES)

4.43.1 In order to deal with the complaints from the contractors / suppliers and public

effectively, a complaint handling mechanism shall be set up at the State level and

immediate action shall be initiated on receipt of complaints to redress the grievances.

All complaints on receipt should be entered in a register. Within 15 days, these

complaints should be discussed and mentioned in the evaluation report of the tender.

If a complaint is received after award of contract, it should be discussed on the file

and put up to the appropriate authority for a decision. All complaints shall be handled

at a level higher than that of the level at which the procurement process is being

undertaken and the allegation made in the complaints should be thoroughly enquired

into, and if found correct, appropriate remedial measures shall be taken by the

appropriate authorities. A register of the complaint redress shall be prepared at each

level and shall contain the following information

Serial Number of the complaints

Date on which the complaint was made

Particular of the person making the complaint

Nature of the complaint

Complaint against whom if against a person

Detail of action taken and subsequent follow ups specifying on which date the

action was taken

Whether the complaint has been satisfied if not why.

Action taken against the guilty

General remarks

4.43.2 Subsequently an on line data base will be created, which will be regularly updated and

which would be capable of creating on line reports for the purpose of the monitoring.

The States will announce on its web site about having in place a complaint redress

mechanism.


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4.43.3 In case any individual officer/staff is found responsible, suitable disciplinary

proceedings shall be initiated against such officer/staff .This register shall also be

subject to audit by the chartered accountants engaged by the States as auditors.

4.43.4 An appropriate response should also be sent to the complainant.

4.44 PROCUREMENT AUDIT (Also Applicable to Procurement of Services)

4.44.1 Post review of all the contracts under the Project shall be conducted by the

government auditors as per laid down procedure. All documents related to

procurement should be filed and kept systematically and safely.

4.44.2 In addition, the World Bank will also have the right to conduct post review of the

contracts at the central, states, and the districts levels. The concerned authorities will

be required to make all relevant documentation available to the World Bank, as and

when required.

4.45 REVIEW OF CONTRACTS BY THE WORLD BANK (Also Applicable to Procurement of Services)

4.45.1 It is the World Bank’s policy to require that Borrower’s, as well as bidders, suppliers,

and contractors, under the World Bank financed contracts, observe the highest

standard of ethics during the procurement and execution of contracts. In pursuance to

this policy, the Bank will have the right to require that a provision be included in

bidding documents and in contracts financed by a World Bank loan/ credit, requiring

bidders, suppliers, and contractors to permit the World Bank to inspect their accounts

and records and other documents relating to the bid submission and contract

performance and to have them audited by auditors appointed by the World Bank.

4.45.2 Contracts which are (i) not subject to prior review by the World Bank, and (ii)

awarded following these guidelines will be post reviewed by the World Bank.

4.45.3 The PEA/SPMU/NPMU shall retain all documentation with respect to each contract

(including contracts subject to prior review by the World Bank) during project

implementation and up to two years after the closing date of the Loan Agreement.

This documentation would include, but not be limited to tender documents, bids/

tenders submitted by the bidders/ tenderers, the original signed contract, the analysis

of the respective proposals, and recommendations for award, for examination by the

World Bank or its Consultants. The Borrower shall also furnish such documentation

to the Bank upon request. If the World Bank determines that the goods, work or

services were not procured in accordance with the agreed procedures, as reflected in

the Loan Agreement and also detailed in the Procurement Plan approved by the World

Bank or that the contract itself is not consistent with such procedures, it may declare

misprocurement as established in the procurement guidelines. The World Bank shall

promptly inform the Borrower the reasons for such determination.

4.45.4 Procurement checklists for all contracts whether post review or prior review, goods or

civil works are enclosed vide Enclosure 7 to 10.


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4.46 RECORD KEEPING

4.46.1 All Purchase Departments shall maintain the following basic records:

PURCHASE ORDER LOG --- containing a numerical brief record of all purchase

orders issued i.e. purchase order number, supplier’s name, brief description of stores,

total value etc.

OPEN ORDER FILE --- containing status of all outstanding orders.

CLOSED ORDER FILE --- containing historical data of all completed orders.

VENDOR RECORD FILE --- containing names, addresses, materials that vendor can

supply, delivery and quality records etc.

RATE CONTRACT FILE --- containing the purchase records of items under rate

contract. It is especially important when the contract is an open one against which

orders are placed.

PURCHASE REPORTS --- since the purchase department handles a sizable portion

of organization finances, it is desirable to have some summary reports periodically

(monthly/ quarterly/ half yearly/ annually) available to the management.

4.46.2 Besides the above, the purchase officers should maintain all the records of issue,

receipt, opening, evaluation of tenders, award of contracts i.e. all pre-order and post-

order records in chronological order and the files kept in an identified place and

should be retrievable for scrutiny whenever needed without wastage of time. The

records of complaint handling, correspondence with clients, consultants, banks,

vendors, etc. also should be kept separately and should be retrievable. Records should

be maintained for a period of not less than two years beyond the project closing date

and for any further period as may be decided by the government.

4.47 MISPROCUREMENT

4.47.1 The World Bank does not finance expenditures under a contract for goods, works, or

non-consulting services if the World Bank concludes that such contract:

a) Does not fulfill the purpose for which the Project has been prepared and approved,

or is a deviation from the technical requirements as agreed;

b) Has not been awarded in accordance with the agreed provisions of the Loan

Agreement and as further elaborated in the Procurement Plan to which the World

Bank provided no objection;

c) Could not be awarded to the bidder otherwise determined successful due to willful

dilatory conduct or other actions of the Borrower resulting in unjustifiable delays,

the successful bid being no longer available, or the wrongful rejection of any bid;

or

d) Involves the engagement of a representative of the Borrower, or a recipient of any

part of the Loan proceeds, in fraud and corruption as per paragraph 4.31.1(c).

4.47.2 In such cases, whether under prior or post review, the World Bank will declare

misprocurement, and it is the World Bank’s policy to cancel that portion of the loan


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allocated to the goods, works, or non-consulting services that have been misprocured.

The World Bank may, in addition, exercise other remedies provided for under the

Loan Agreement. Even once the contract is awarded after obtaining a no objection

from the World Bank, the World Bank may still declare misprocurement and apply in

full its policies and remedies regardless of whether of the loan has closed or not, if it

concludes that the no objection was issued on the basis of incomplete, inaccurate, or

misleading information furnished by the Borrower or the terms and conditions of the

contract had been substantially modified without the World Bank’s no objection.


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CHAPTER 5

SELECTION OF CONSULTANCY SERVICES

5 SELECTION OF CONSULTANCY SERVICES

5.1 GENERAL

5.1.1 The expression “consulting services” defines services of an intellectual and advisory

nature provided by the Consultants using their professional skills to study, design and

organize specific projects, advise clients, conduct training and transfer knowledge.

Consultants are engaged for the following reasons:

(i) Consultant offer more efficient allocation of resources by providing

specialized services for limited amounts of time without any obligation of

permanent employment on the part of Client.

(ii) Consultant, engaged for their superior knowledge, transfer skills and upgrade

the knowledge base of their clients while executing the assignment.

Knowledge transfer from Consultants to Client forms an important part of the

assignment.

(iii) Consultants can offer independent advice to their client on the most suitable

approaches, methodologies, and solution for their projects.

Consultant services in World Bank funded projects should satisfy the

following requirements:

Meet the highest standards of quality and efficiency and

Be unbiased, that is, delivered by a consultant acting independently from

any affiliation, economic or otherwise, which may cause conflicts between

the consultant’s interest and those of the client;

Independence may be the most important asset offered by Consultants. It

allows consultants to choose technologies and products from a range of

contractors and suppliers to satisfy the needs of the Clients and to protect

its interests:

5.1.2 Consultancy services in World Bank Projects may be grouped as under:

Preparation Services Implementation Services Advisory services

Sector studies Tender documents Policy and Strategy

Master plans Procurement assistance Re-organization/

Privatization

Feasibility studies Construction supervision Institutional building

Design studies Project management Training/ Knowledge

transfer

Quality management Management Advice

Commissioning Technical / Operating

Advice


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5.1.3 The Selection of consultants is guided by the following principles:

High quality of services;

Economy and efficiency;

Competition among qualified consultants from all eligible countries;

Participation of national consultants; and

Transparency in the selection process

5.1.4 The SPMU/NPMU (Borrower/Employer) shall be responsible for selecting,

evaluating and awarding the assignment.

5.2 SELECTION PROCEDURE

5.2.1 The steps involved in the selection of a Consultant for any consultancy services refer

to:

Preparation of Terms of References (TOR)

Preparation of cost Estimate and Budget of the assignment

Advertising for wide publicity for seeking expression of interest (EOI)

Preparation of short listing of Consultants for the assignment

Preparation and issue of the Request for Proposal (RFP) containing Letter of

Invitation, Information to Consultants and Proposed Contract

Receipt of Proposal from Consultants

Evaluation of technical proposal: consideration of quality

Evaluation of financial proposal: cost evaluation

Final evaluation of quality and cost; and

Negotiation and award of the contract to the selected firms;

Publication of award on website and debriefing of unsuccessful consultants.

5.2.2 The Terms of Reference (TOR) should include:

- A precise statement of objectives;

- An outline of the task to be carried out;

- A schedule for completion of tasks;

- The support / inputs provided by the client i.e. SPMU/NPMU

- The final outputs that will be required of the consultant;

- Composition of Review Committee (not more than three numbers) to

monitor the consultant’s works and procedure for; and

- Mid-term review and reports required from consultants;

- Review of the Final Draft Report.

- List of key professionals whose CV and experience would be

evaluated.


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5.2.3 The Cost Estimates or Budget should be based on SPMU/PEA/NPMU assessment of

the resources needed to carry out the assignment; staff time; logistic support; and

physical inputs e.g. vehicles and laboratory equipment. Cost shall be divided into two

broad categories; (a) fee or remuneration and (b) reimbursable; and further divided

into local and foreign currency.

5.2.4 Advertising seeking Expression of Interest (EOI)] for short listing shall be published

in:

In the national gazette, provided that it is of wide circulation, or

In at least one newspaper, or technical or financial magazine, of national

circulation in the Borrower’s country, or

In a widely used electronic portal with free national and international access

in English, French, or Spanish.29

5.2.5 In addition, assignments expected to cost more than US$300,000 shall be advertised

in UNDB online.43

Borrowers may also in such cases advertise REOIs in an

international newspaper or a technical or financial magazine.

5.2.6 Short Listing

SPMU/PEA/NPMU is responsible for preparation of the short list and gives first

consideration to those firms expressing interest which possess the relevant

qualification.

The short list shall comprise of six firms with a wide geographic spread, with not

more than two firms from any one country unless there are no other qualified firms

identified to meet this requirement; and at least one firm from a developing country,

unless qualified firms from developing countries are not identifiable. The short list

can comprise of entirely national consultants, if the value of assignment is less than

US $ 80000044

however, if foreign firms have expressed interest, they shall not be

excluded from consideration.

5.2.7 Government owned enterprises in India may participate only if they can establish that

they:

- are legally and financially autonomous; and

- operate under commercial law

29

In addition, at the option of the Borrower, in the National Language as defined under paragraph 1.22 of the

World Bank Guidelines

43 Exceptionally, when the World Bank has agreed to a short list comprising only national consultants, the

World Bank may agree that the Borrower does not publish in the UNDB online contracts above US$300,000.

US Dollar thresholds indicated throughout these Guidelines include all taxes and duties, if applicable.

44Revised from wef 13

th June 2013


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5.3 SELECTION METHODS

5.3.1 The methods for selection of Consultants include:

Quality and Cost Based Selection (QCBS);

Quality Based Selection (QBS);

Selection under a Fixed Budget (FBS);

Least Cost Selection (LCS);

Selection Based on Consultants Qualification (CQ);

Single Source Selection (SSS); and

Commercial Practices (CP)

Individual Consultant (IC)

5.3.2 The choice of the appropriate method of selection is related to the nature, size, and

complexity, likely impact of the assignment, technical and financial considerations,

and particular circumstances. It is therefore necessary to carefully define the

assignment, particularly the objectives and scope of the services, before deciding on

the selection method.

5.3.3 Quality and Cost Based Selection (QCBS)

(I) Quality and Cost Based Selection (QCBS) is method based on the quality of the

proposals and cost of services to be provided. This method is appropriate when:

the scope of work assignment is precisely defined and the TOR are

well specified and clear; and

an estimate with reasonable precision for the staff time as well as the

other inputs and cost required of the Consultants can be assessed.

(II) The QCBS is appropriate for assignments such as:

Feasibility studies and designs;

Preparation of bidding documents and detailed designs;

Supervision of construction of works and installation of equipment;

Technical assistance services and institutional development of Client

agencies; and

Procurement and inspection services.

(III) Under QCBS the technical and financial proposals are submitted simultaneously

in separate sealed envelopes (two-envelope systems). Evaluation of proposals is

carried out in two stages: (1) quality; and (2) cost. The technical envelopes are

opened by a Committee of officials of Client immediately after closing time for

submission of proposal; the financial proposals remain sealed and shall be

deposited with reputable public auditor or independent authority until they are

opened publicly

The financial envelopes of those consultants who submitted responsive

technical proposals meeting the minimum qualifying mark are opened

in the presence of the Consultants or their representatives. The

combined evaluation is carried out by weighing and adding the quality

and the cost scores, and the Consultant having the highest comprised


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score is invited for negotiations. Since price is a factor of selection,

staff rates and other unit rates shall not be negotiated.

(IV) QCBS permits the Client to select a preferred trade-off between cost and quality

and the benefit from prices competition, even if only to a limited extent.

Transparency is increased under QCBS with public opening of the financial

proposals. The contract negotiations will be easier because of the limited scope

of financial negotiations.

5.3.4 Quality Based Selection (QBS)

(I) Quality Based Selection (QBS) is based on an evaluation of the quality of the

proposals and the subsequent negotiation of the financial proposal and contract

with the consultant who submitted the highest ranked technical proposal. QBS is

appropriate if:

the downstream impact of the assignment is so large that the quality of

services becomes of overriding importance for the outcome of the

project;

the scope of work of the assignment and TOR are difficult to define

and there is need to select among innovative solutions;

the assignment can be carried out in substantially different ways such

that cost proposal may not easily be comparable; and

the introduction of cost as a factor of selection renders competition

unfair.

(II) QBS should be adopted for assignment such as:

Complex country sector and multi-disciplinary investment studies.

Strategic studies in new fields of policy and reforms

Master plans, complex pre-feasibility and feasibility studies and design

of complex projects.

Assignments in which traditional consultants, non-government

organization (NGO) and /or a U.N. agencies compete

(III) Under QBS the Client may request submission of technical proposals only. After

receiving the World Bank no objection for the technical evaluation report, the

Consultant with highest rendering technical proposal is invited to present its

financial proposal. However, the Client may wish the financial proposals to be

submitted at the same time as the technical proposals but in separate envelope

(two-envelope system). In that case, financial proposals should be kept safely

until the World Bank’s no-objection to the technical evaluation is received. Only

the financial proposal of winning consultant is opened; the others returned un-

opened after negotiations with the winning firm are successfully concluded.

(IV) The staff effort indicated by the consultant may differ considerably from the

Client’s estimate depending on the particular methodology adopted by the

consultant. Since TOR of assignments under QBS are generally less defined and

relatively more complex than QCBS. Contract negotiations with the winning

consultant may be lengthy and complicated.


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5.3.5 Selection under Fixed Budget (FBS)

(I) Selection under a Fixed Budget (FBS) is based on disclosing the available budget

to invited consultants in RFP and selecting the consultant with the highest –

ranking technical proposal within the budget. It needs to be ensured that budget is

compatible with the TOR and that consultant will be able to perform the tasks

within the budget. FBS is appropriate only when:

the budget is fixed and cannot be exceeded;

the TOR are precisely defined; and

the time and staff month effort required from the Consultant

can be assessed with precision.

(II) To reduce the financial risk for consultant and to avoid receiving unacceptable

technical proposals or no technical proposals at all, FBS must be used for well-

defined and simple assignments with a low financial risk for the consultants.

Typical assignments awarded under FBS are:

sector studies, market studies, and surveys of limited scope;

simple pre-feasibility studies and review of existing feasibility

studies;

review of existing technical design and bidding documents; and

project identification for which the level of detail can be

matched with the available funds

(III) Under FBS, Consultants are requested to submit their technical and financial

proposals in separate envelopes. Technical proposals are evaluated first, using

same procedure as for QCBS and QBS; thereafter the financial envelopes are

opened in public. In case a proposal does not cover minor technical aspects

included in the TOR, the Client calculates the evaluated price of that proposal by

adding to the offered price the estimated cost of the missing activities or items.

Proposals that exceed the indicated budget after adjustments and corrections are

discarded. The Consultant, who has submitted the highest ranked technical

proposal among the remaining proposals, is selected.

(IV) Since the budget is predetermined, the Consultants TOR cannot change

substantially, and technical negotiations shall cover minor aspects. Financial

negotiation will not include discussion of remuneration rates and of other unit

rates, but only minor rearrangements of activities and staff compatibility with the

plan of work and clarification of any tax liability.

5.3.6 Least Cost Selection (LCS)

(I) Under Least Cost Selection (LCS) a minimum qualifying mark for quality is

established and indicated in the RFP, short-listed consultants have to submit their

proposals in two envelopes. The technical proposals are opened first and

evaluated. Proposals scoring less than minimum qualifying mark are rejected,

and the financial envelopes of the rest are opened in public. The consultant with

the lowest evaluated price is selected.

(II) The LCS method is more appropriate for small assignments of a standard or

routine nature where well established practices and standards exist from which a


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specific and well defined outcome is expected, which can be executed at different

costs, e.g.,

Standard accounting audits

Engineering designs and/ or supervision of simple projects.

Repetitive operations and maintenance work and routine

inspection, and

Simple surveys

(III) Since quality is set as the minimum qualifying mark, the Client should not set

such a mark higher than the usual (say at 75 to 80 per cent) to ensure quality and

avoid the risk of selecting low-cost proposals of poor or marginally acceptable

quality.

5.3.7 Selection Based on Consultant’s Qualification (CQ)

(I) The Selection Based on Consultant’s Qualification (CQ) method applies to very

small assignments for which the full –fledged selection process would not be

justified. CQ is considered for assignments such as:

brief evaluation studies at critical decision points of projects;

executive assessment of strategic plans;

high level, short term, legal –expertise; and

participation in project review expert panel.

(II) Under CQ the Clients first prepare the TOR, then requests for Expression of

Interest and qualification information on the consultant’s experience and

competence relevant to the assignment. The Client establishes a short list and

selects the firm with the best qualifications and references. The selected firm is

asked to submit a combined technical and financial proposal and is then invited

to negotiate the contract if the technical proposal proves acceptable.

(III) The CQ method aims at reducing the cost and time needed to hire a Consultant.

5.3.8 Single Source Selection (SSS)

(I) Under Single Source Selection (SSS) the Client asks a specific consultant to

prepare technical and financial proposals, which are then negotiated. Since there

is no competition, this method is acceptable to the World Bank only in

exceptional cases and made on the basis of strong and convincing justification

where it offers clear advantages over the competition. This is because:

for tasks that represent a natural continuation of previous work

carried out by the firm (see next paragraph);

in exceptional cases, such as, but not limited to, in response to

natural disasters and for emergency situations both declared by

the Borrower and recognized by the World Bank;

for very small assignments; or

when only one firm is qualified or has experience of exceptional

worth for the assignment.


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In all such cases, the Borrower is not required to issue an RFP and

shall submit to the World Bank for its review and no objection the

TOR of the assignment, a sufficiently detailed justification including

the rationale for single-source selection instead of a competitive

selection process, and the basis for recommending a particular firm,

except for contracts below a threshold defined on the basis of risks and

the scope of the project, and set forth in the Procurement Plan.

(II) When continuity for downstream work is essential, the initial RFP shall outline

this prospect, and, if practical, the factors used for the selection of the consultant

shall take the likelihood of continuation into account. Continuity in the technical

approach, experience acquired, and continued professional liability of the same

consultant may make continuation with the initial consultant preferable to a new

competition subject to satisfactory performance in the initial assignment. For

such downstream assignments, the Borrower shall ask the initially selected

consultant to prepare technical and financial proposals on the basis of the TOR

furnished by the Borrower, which shall then be negotiated.

(III) If the initial assignment was not awarded on a competitive basis or was awarded

under tied financing or if the downstream assignment is substantially larger in

value, a competitive process acceptable to the World Bank shall normally be

followed in which the consultant carrying out the initial work is not excluded

from consideration if it expresses interest. The World Bank will consider

exceptions to this rule only under special circumstances and only when a new

competitive process is not practicable.

5.4 SCOPE OF WORK

5.4.1 In a TOR, scope of work of the assignment is usually defined by addressing the

following issues:

definition, scope, limits, and criteria of acceptance of assignment;

desired level of detail (level of design, accuracy, composition of cost

estimate etc.)

span of projections (time horizon, life span of project components, and

so forth);

necessary comparison of the assignment with similar projects;

main issues to be addressed;

alternatives to be considered;

necessary surveys, special analysis, and models;

special equipment requirement;

institutional and legal framework of the project;

transfer of knowledge, objectives and scope;

language requirement;

need of continuity, such as data gathering, and

quality management requirements.


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5.4.2 Phased assignments are likely to require that the scope of work be modified

depending on intermediate results. For instance, the scope of work for a feasibility

study originally covering a number of alternatives will be reduced if, during execution

of the assignment, some alternatives prove more viable. Similarly, the scope of work

can be expanded if more accurate studies than initially anticipated become necessary.

In such cases, the TOR should clearly indicate the circumstances under which a

decision will be made by the Client to modify the scope of work.

5.5 ESTIMATING COST & BUDGET

5.5.1 In preparation of cost estimate, the following expenses are added:

Consultant staff remuneration;

Travel and transport;

Mobilization and demobilizations;

Staff allowances;

Communication;

Office rent, supplies, equipment and insurance;

Surveys and training programs;

Report printing;

Taxes and duties; and

Contingencies.

5.5.2 The cost estimate is based on an estimate of the personnel (expert per month) required

for carrying out the services, taking into account the time required by each expert

needed, and then making estimate for each of the related cost components. It is

important to define these inputs as accurately as possible.

5.6 EVALUATION

5.6.1 The evaluation of the technical proposals should be done as per criteria specified in

the Letter of Invitation/RFP. The following criteria are used as a basis for evaluation

of technical proposals:

Specific experience of the consultant relevant to the assignment;

Adequacy of the proposed methodology and work plan in responding

to the TOR; and

Key staff’s qualification and competence for the assignment.

Depending on the particular objectives of the assignment, two

additional criteria may be required:

Suitability of the transfer of knowledge program (training); and

Participation of nationals among proposed key staff.

5.6.2 Table 5.1 below shows a range of points that may be allocated to each criterion on a

scale of 1 to 100. The weights may be adjusted for specific circumstances.


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Table 5.1: Point Distribution of Evaluation Criteria for Technical Proposals

Evaluation Criteria Points (Weights)

Specific experience of Consultants 0 to 10

Adequacy of the proposed methodology and work

plan

20 to 50

Qualification and competence of key staff 30 to 60

Suitability of the transfer of knowledge program

(training) – optional

Normally not to exceed

10

National participation (nationals among key staff) –

optional

Not to exceed 10

Total 100

5.6.3 The criterion qualifications and competence of key staff is divided into following sub

criteria:

general qualification;

adequacy for the assignment; and

experience of region.

5.6.4 The evaluation is carried out using the pre-qualification and experience shown in their

curriculum vitae (CV). The points allotted to the criterion are distributed among the

above sub criteria as per percentage given in Table 5.2 below:

Table 5.2: Range of percentage in Point Distribution of Key Staff Qualification and

Competence Sub Criteria

Sub-criteria Range of Percentage

General Qualifications 20-30

Adequacy for the assignment 50-60

Experience in region and language 10-20

Total 100

5.6.5 Methodology & Work Plan: The methodology and work plan is a key component of

the technical proposal and should be evaluated carefully. Sub-criteria for evaluating

this component of the proposal should include the following:

(i) Technical Approach & Methodology: Here consultants explain their

understanding of the objective of the assignment, highlights the issues and

their importance, and explain technical approach they would adopt to address

them. They should then explain the methodology they propose to adopt,

demonstrate the compatibility of these methodologies with the proposed

approach.

(ii) Work Plan: Here consultants propose the main activities of the

assignment, their content and duration, phasing and inter relations, milestones

and delivery dates of the most important reports. The consistency of the

technical approach and methodology with the proposed work plan is a good

indication that consultants have understood the TOR and are able to translate

them into a feasible working plan.


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(iii) Organization and Staffing: In this section the Consultants propose

the structure and composition of their team. It will list the main disciplines

involved, the key expert responsible and proposed technical and support staff.

The roles and responsibilities of key experts should be set out in job

description.

The methodology, work plan and organization are all integrated. The work

plan depends on the technical approach and methodology adopted, and these

in turn determine the required organization.

5.6.6 The RFP has to indicate the relative weight assigned to the technical and financial

proposals. For standard arrangement, the weight for quality is normally 80 percent

with 20 percent given to cost. More than 20 percent weight to the cost of services is

justified only for relatively routine and straight forward assignments, (such as designs

of very simple structures), whereas in no case should it exceed 30 percent. For

assignments in which quality considerations are relatively important, a minimum

weight of 10 percent should be given to cost, and when considerations of quality are

of primary importance, QBS is preferable to QCBS.

5.6.7 If cost is a factor of selection, a minimum technical qualifying mark may be provided

in RFP to minimize the risk of accepting low-quality proposals at a very low cost. A

qualifying mark in the range of 70 to 80 percent is typical. Any technical proposal

with a score below this threshold is rejected, and the financial envelope is returned

unopened. Setting the threshold too high increases the risk of rejection of a majority

of proposals.

5.6.8 Table 5.3 below summarizes the five evaluation criteria provided in the Standard

Request for Proposals and gives examples of sub-criteria that could be adopted by the

Client when preparing the RFP.

Table 5.3: Evaluation Criteria and Sample Sub-criteria

Evaluation criteria Evaluation sub-criteria (select a maximum of three)

Specific experience of the consultants

in the field of assignment

Normally no sub criteria is specified

Adequacy of the proposed

methodology and work plan in

responding to the TOR

- Technical approach and methodology

- Work plan

- Organization and staffing

Note: The number of sub-criteria may be increased depending

on the characteristic of the assignment

Qualification and competence of key

staff proposed for the assignment

- General qualifications

- Adequacy for the assignment

- Experience in the region and language

Note: These three sub-criteria are defined by the RFP and

cannot be changed.

Suitability of the transfer of

knowledge program (training)

- Relevance of program

- Training approach and methodology

- Qualifications of training specialists

National participation (nationals

among key staff)

No sub criteria but only the method to apply this criteria

specified


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5.6.9 Notification to Consultants: On completion of evaluation of Technical Proposal,

World Bank’s no objection is received to the Technical Evaluation Report. On receipt

of World Bank’s no objection for all prior review cases , Client notifies consultants

whose proposal did not meet the minimum technical qualifying marks specified in the

RFP, or were found to be non-responsive, indicating that the consultant’s financial

proposal will be returned unopened at the end of selection process. The Client

simultaneously notifies consultants whose technical proposals were above minimum

technical qualifying mark, and inform them of the date and time set for opening of

financial envelopes. The opening date should be at least two weeks after the

notification date, to allow enough time for consultants to make arrangements to attend

the opening.

5.6.10 Evaluation of Financial Proposals: On the date and time set for opening the

financial proposal, the Evaluation Committee verifies that the financial proposals

have remained sealed and then open them. The name of consultants, the qualifying

scores, and proposed prices are read aloud and recorded as each financial proposal is

opened. No modification to financial proposal is permitted. The Client prepares the

minutes of the public opening, which should be attached to the Financial Evaluation

Report.

5.6.11 The Evaluation Committee should first review the financial proposals for arithmetical

errors and consistency between financial and technical proposals. Arithmetical errors

should be corrected, omitted items evaluated, and corresponding adjustments made to

the offered prices to obtain final evaluated prices. For purposes of comparing

proposals, evaluated prices should be converted to Indian Rupees using exchange rate

on date indicated in RFP.

5.6.12 Combined Evaluation and Final Score: If QCBS is the method of selection; the

Evaluation Committee weighs and combines the scores of the technical and financial

proposals to obtain a final ranking of the proposals and recommendation of award.

The Final Evaluation Report is submitted to decision making authority for review and

forward the report to the World Bank for its information. The Client invites the

selected consultant for negotiations and informs the other consultants that they were

unsuccessful and furnishes the name of selected firm. The scope of negotiation is

given in paragraph 5.7 below. After technical and financial negotiations are

completed, the Client shall furnish to the World Bank for all prior review cases, in

sufficient time for its review, a copy of initialed negotiated contract. If the negotiated

contract results in a substitution of key staff or any changes in TOR and in the

originally proposed Contract, the Client shall highlight the changes and provide an

explanation of why these changes are necessary.

5.7 NEGOTIATIONS

5.7.1 Negotiations shall include discussions of TOR, the methodology, staffing, Clients

input and special conditions of the Contract.

5.7.2 The selected firm should not be allowed to substitute Key Staff, unless both parties

agree that undue delay in the selection process makes such substitution unavoidable or

that such changes are critical to meet the objectives to the assignment.


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5.7.3 Financial negotiation shall include clarification of the Consultants tax liability in the

Clients own country and now this tax liability has been or would be regulated in the

contract.

5.7.4 Where QCBS procedure is followed, in the case of lump-sum, contract price should

not be negotiated. In the Time Based Contracts, proposed unit rates for staff months

and reimbursable shall not be negotiated (since there have already been a factor of

selection) unless there are exceptional reasons. Reimbursable are paid on actuals upon

presentation of receipts and hence not subject to negotiations. If client wants to fix a

ceiling he should do so by indicating in RFP.

5.8 EVALUATION COMMITTEE

5.8.1 For technical and financial evaluation of consultants’ proposals, the Client shall

appoint a committee of three to five qualified individuals of comparable hierarchical

level who shall undertake the process in the highest ethical standards. After the

Committee has agreed upon the criteria and sub-criteria definitions, and on rating and

scoring methods, each committee member shall evaluate the proposals received

independently. The Evaluation Committee should include one or two members of the

team responsible for preparation of the TOR. To ensure transparency and consequent

acceptability of the evaluation process and its results in sensitive case, a truly

independent observer is allowed to participate in session of Evaluation Committee.

5.8.2 The Evaluation Committee submits its report and recommendation to the designated

decision making authority for review and transmission to the World Bank for no

objection if the contract is subject to the prior review, or for review and award for

contracts for post-review.

5.9 REJECTION OF ALL PROPOSALS

5.9.1 The cases of “rejection of all proposals received” need to be referred to the World

Bank for no-objection and clearance. The grounds for rejecting all proposals can be as

under:

The proposals present major deficiencies in responding to RFP.

The cost proposals are substantially higher than the Client’s estimated budget.

5.10 ROLE OF BANK IN EVALUATION PROCESS

5.10.1 Selection of Consultants is the Client’s responsibility and Bank does not participate in

the evaluation of proposals but, upon request of the Client, may provide advice in

methodology and selection procedures before the actual evaluation takes place.

5.10.2 In assignments in which prior review is required, the World Bank reviews the

Technical Evaluation Report, if satisfied, and sends the no objection to the Client. The

World Bank may request additional explanation or information about the report

contents from the Client when necessary. In exceptional cases, the World Bank may

ask the Client to submit one or more proposals for its review.

5.10.3 Under QCBS, if the Bank determines that the final evaluation report,

recommendations for award and / or negotiated contract are inconsistent with the


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provision of RFP, it shall promptly inform the Client and state the reason for its

determination, otherwise, the Bank shall provide the final “no objection” to the

contract award. The Client shall confirm the award of the contract. The description

and amount of the contract, together with the name and address of the firm, shall be

subjected to public disclosure by the Bank upon the Clients confirmation of contract

award.

5.11 TYPES OF CONSULTANT’S CONTRACTS

5.11.1 The type of contract with Consultant can be:

Lump Sum;

Time – based;

Retainer and / or success fee

Percentage; and

Indefinite delivery

5.11.2 Lump sum Contracts: Lump sum contracts are used mainly for assignment in which

the content and length of the services and duration of services is clearly defined.

Lump-sum contracts shall not generally be subject to automatic price adjustment

when their duration is expected to be less than 18 (eighteen) months, except for small-

value multi-year contracts (for example, with auditors). The price of a lump-sum

contract may be exceptionally amended when the scope of the services is extended

beyond what was contemplated in the original TOR and contract.

5.11.3 Lump sum contracts are often used in relatively simple and clearly defined

assignments such as:

Planning and Feasibility studies

Environmental studies

Detailed design of infrastructures

Preparation of Data Base

5.11.4 Payments are made in accordance with a contractually agreed upon schedule of

delivery or against schedule of percentage of work completed.

5.11.5 A lump sum contract is easy for the Clients to administer and requires little technical

supervision.

5.11.6 Time –Based Contracts: Under time based contract, the consultant provides services

on a time basis according to quality specification and consultant’s remuneration as

based on agreed upon unit rate for consultant staff multiplied by actual time spent by

staff on assignment and reimbursable expenses as per actual and/or agreed unit rates.

Such contracts are recommended for:

Complex studies or studies of new approach

Supervision of Implementation assignment

Training Assignments

Advisory services


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5.11.7 Time based contracts transfer cost risks to the Client

5.11.8 Retainer and/ or Success Fee Contracts: The type of contract is often adopted to

remunerate financial and management advisers who assist bank’s clients in the sale of

assets, such as privatization operation. In these cases the QCBS method, in which

consultants are asked to quote a retainer fee and/ or a success fee, is generally

recommended for selection of Consultants. The proportion of retainer and success fee

is often fixed in advance and is not subject to negotiation by the winning consultant.

The retainer fee proportion is higher if the Consultant’s role constitutes more to

planning and design of privatizations reforms. Success fees are appropriate when

success is related to the efforts of the firms involved and is relatively easy to quantify.

5.11.9 Percentage Contracts: In a percentage contract consultants receive an agreed upon

percentage of the actual project cost. Sample of percentage contract includes:

Architectural services

Engineering services

Procurement services

Inspection Agents

5.11.10Indefinite Delivery Contracts: Indefinite delivery contracts are used for on-call

specified services. The Client and the firm agree upon the unit rates to be paid to the

experts and payments are made on the basis of the time actually used. Such contracts

include:

Advisory for complex projects i.e. Dam panel

Expert Adjudicator

Technical Trouble shooting

5.12 SELECTION OF APPROPRIATE CONTRACT FORM

5.12.1 Table 5.4 below indicates the correlation between type of assignment, selection

method and type of contract. They should be considered with some degree of

flexibility, depending on the size and characteristics of the assignment

Table 5.4: Correlation between Type of Assignment, Selection Method& Type of

Contract

Type of assignments/scope of work Selection

Method

Type of Contract

(1) Critical studies in the field of policy, strategy, and

management of Client’s institutions

(2) Country economic, section, or investment studies

(3) Master plans

(4) Pre-feasibility studies

(5) Complex feasibility studies

(6) Studies or design of complex projects

(7) Studies in new technology or human and social

QBS

Time –based


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Type of assignments/scope of work Selection

Method

Type of Contract

(1) Simple planning studies

(2) Simple feasibility studies

(3) Environmental studies

(4) Contract and detailed design of infrastructures

(5) Preparation of bidding documents

(6) Date processing

(7) Clearly defined strategy and management studies

QCBS

Lump sum

(1) Technical assistance for institutional development

(2) Technical assistance for privatization programs

QBS or

QCBS

Time-based or

indefinite

delivery

(1) Technical assistance in investment projects

(2) Construction supervision

(3) Privatization operations

(4) Financial sector reforms

(5) Procurement/ inspection

(6) Simple, precisely defined assignment with fixed

budget

(7) Standard or routine assignments costing less than

Rs.90.00 lakhs (US $ 200,000)

QCBS

QCBS

QCBS

QBS

QCBS

FBS

LCS

Time –Based

Time-Based

Retainer and/or

success fee

Retainer and/or

success fee

Percentage

Lump sum

Lump sum

5.13 CONTRACTS

5.13.1 The contract invariably comprises of:

The form of contract to be signed by the Client and the Consultant

The (General Conditions of Contract) GCC, which must be kept unchanged

The (Special Conditions of Contract) SSC, which are specific to the

assignment, and

The Appendices

5.13.2 It needs to be noted the text of the Form of Contract and of the General Conditions of

Contract (GCC) cannot be changed. The Special Conditions of Contract (SSC)

enables the Borrower to amend or supplement the clauses of the general condition to

reflect local conditions and characteristics of the assignment.

5.14 PROCUREMENT OF SERVICES OF INDIVIDUAL CONSULTANT

5.14.1 Individual consultants are employed on assignments for which (a) a team of experts is

not required, (b) no additional outside (home office) professional support is required,

and (c) the experience and qualifications of the individual are the paramount

requirement. When coordination, administration, or collective responsibility may

become difficult because of the number of individuals, it would be advisable to

employ a firm. When qualified individual consultants are unavailable or cannot sign a

contract directly with a Borrower due to a prior agreement with a firm, the Borrower

may invite firms to provide qualified individual consultants for the assignment.


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5.14.2 Advertisement for seeking expressions of interest (EOI) is encouraged, particularly

when the Borrower does not have knowledge of experienced and qualified individuals

or of their availability, or the services are complex, or there is potential benefits from

wider advertising, or if it is mandatory under national law. It may not, however, be

required in all cases and should not take place for small value contracts.45

All

invitations for EOIs should specify selection criteria that are solely based on

experience and qualifications. When firms are invited to propose individual

consultants, EOIs shall clarify that only the experience and qualifications of

individuals shall be used in the selection process, and that their corporate experience

shall not be taken into account, and specify whether the contract would be signed with

the firm or the proposed individuals.

5.14.3 Individual consultants are selected on the basis of their relevant experience,

qualifications, and capability to carry out the assignment. They do not need to submit

proposals and shall be considered if they meet minimum relevant requirements which

shall be determined by the Borrower on the basis of the nature and complexity of the

assignment, and assessed on the basis of academic background and relevant specific

experience, and, as appropriate, knowledge of local conditions such as national

language, culture, administrative systems, and government organization. The selection

shall be carried out through the comparison of the relevant overall capacity of at least

three qualified candidates among those who have, directly or through a firm,

expressed interest in the assignment or have been approached directly by the

Borrower. Individuals selected to be employed by the Borrower shall be the most

experienced and best qualified, and shall be fully capable of carrying out the

assignment. The Borrower shall negotiate a contract with the selected individual

consultant (or the firm as the case may be) after reaching agreement on satisfactory

terms and conditions of the contract, including reasonable fees and other expenses.

5.14.4 The selection of individual consultants is normally not subject to prior review. The

Borrower shall, however, obtain the World Bank’s no objection: (a) when it has not

been able to compare at least three qualified candidates before hiring, in which case it

shall provide the reasons; (b) before it invites firms to offer the services of individual

consultants as per paragraph 5.1 of the World Bank Guidelines; (c) in case

negotiations with the selected individual fail before proceeding to negotiate with the

next best individual, or firm as the case may be; and (d) in case of single-source

selection as per paragraph 5.14.6 of the World Bank Guidelines. The World Bank

also requires prior review of the selection of certain categories of individual

consultants.

5.14.5 When a contract is signed with a consulting firm to provide individual consultants,

either its permanent staff or associates or other experts it may recruit, the conflict of

45 Advertising for EOIs shall not normally take place for individual contracts below US$50,000. Such threshold

shall, however, be determined in each case, taking into account the nature, complexity, and risks of the

assignment.

The World Bank may agree, if requested by the Borrower, that such assignments be subject to ineligibility for

World Bank financing of individuals of the Borrower country who are under a sanction of debarment from

being awarded a contract by the appropriate judicial authority of the Borrower country and pursuant to its

relevant laws, provided that the World Bank has determined that the individual has engaged in fraud or

corruption and the judicial proceeding afforded the individual adequate due process.


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interest provisions described in these Guidelines shall apply to the parent firm. No

substitution of any individual who was initially proposed and evaluated shall be

permitted, and in such a case, the contract will be signed with the next ranked

consultant.

5.14.6 Individual consultants may be selected on a single-source basis with due justification

in exceptional cases such as: (a) tasks that are a continuation of previous work that the

consultant has carried out and for which the consultant was selected competitively; (b)

assignments with a total expected duration of less than 6 (six) months; (c) urgent

situations; and (d) when the individual is the only consultant qualified for the

assignment. The Borrower shall submit to the World Bank for its review and no

objection the TOR of the assignment, a sufficiently detailed justification, including

the rationale for single-source selection instead of a competitive selection process, and

the basis for recommending a particular individual consultant in all such cases, except

for contracts below a threshold defined on the basis of risks and the scope of the

project, and set forth in the Procurement Plan.

5.15 NON GOVERNMENT ORGANISATIONS (NGOs)

5.15.1 Non-governmental organization (NGOs) may be included in the consultant shortlist if

they express interest provided the Client and World Bank find their qualification

satisfactory. Short lists for assignments that emphasize experience in community

participation and in depth local knowledge may entirely comprise NGOs, and QCBS

should be followed.

5.15.2 Short listing of NGOs shall be based on below noted criteria:

Regulating requirement - NGO should be validly registered under Societies Registration Act of the

Govt. or have other corporate status

- NGO should be validly registered to work in the particular geographic locality.

- NGO’s Article of Association or Bye laws permit operation in the project

sector

- NGO should be non-political

- Should not have been black listed by the Central Social and Welfare Board

(CSWB) or Council for the Advancement of Peoples Action & Rural

Technology (CAPART) or by Central or any State Govt. in India.

Human and Physical measures - Committed leadership at the top supported by adequate service level

leadership.

- Existence of adequate skilled staff in relation to needs of assignment

- NGO should have necessary physical resource base like accessible office

space, vehicles, and communication facilities and so on.

Community Sensitivity - NGO should have prior experience of community development activity and

mobilization.

- NGO should have sufficient understanding of local problems and are sensitive

to issues concerning women and weaker sections of Society.


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- NGO should have keen understanding and should be sensitive to works related

to environment.

- Should have excellent communication skills.

Financial Capacity - Should have required financial strength and capability (last three years turn

over and audited balance sheet should be examined).

- Should have facility to maintain separate records and accounting of funds

allotted for the assignment.

Relevant Sectional and Operational experience - Should have prior experience in related areas.

- Should have adequate experience in Participatory Rural Appraisal.

- Must have been functioning for last three years in similar type of assignments.

5.15.3 RFP should be issued to short listed NGO’s and their bids are obtained for the

concerned services. Technical and Financial Proposals are evaluated and contract

agreement signed after following the same procedure as for other consultants. Where

large areas are involved for conducting IEC and community mobilization, the

requirement of number of NGO may fall short of their availability. In such cases

single Source Selection (SSS) method may be used with prior approval of the World

Bank.

5.16 MISPROCUREMENT

5.16.1 The World Bank does not finance expenditures under a contract for consulting

services if the World Bank concludes that such contract:

a) Has not been awarded in accordance with the agreed provisions of the Loan

Agreement and as further elaborated in the Procurement Plan15 to which the World

Bank provided no objection;

b) Could not be awarded to the consultant otherwise determined successful due to willful

dilatory conduct or other actions of the Borrower resulting in unjustifiable delays, or

the successful proposal being no longer available, or the wrongful rejection of any

proposal; or

c) Involves the engagement of a representative of the Borrower, or a recipient of any

part of the proceeds of the Loan, in fraud and corruption as per paragraph 1.23(c) of

the World Bank Guidelines.

5.16.2 In such cases, whether under prior or post review, the World Bank will declare

misprocurement, and it is the World Bank’s policy to cancel that portion of the loan

allocated to the services that have been misprocured. The World Bank may, in

addition, exercise other remedies provided for under the Loan Agreement. Even once

the contract is awarded after obtaining a no objection from the World Bank, the

World Bank may still declare misprocurement and apply in full its policies and

remedies regardless of whether the loan has closed or not, if it concludes that the no

objection was issued on the basis of incomplete, inaccurate, or misleading information

furnished by the Borrower or that the terms and conditions of the contract had been

substantially modified without the World Bank’s no objection.


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CHAPTER 6

COMMUNITY PROCUREMENT

6 COMMUNITY PROCUREMENT

6.1 CONCEPT

6.1.1 Growing awareness of community participation in the works from planning to

implementation and post implementation can help in smooth operation and

maintenance and successful implementation of the project. Institutional capacity of

community plays a major role for effective community participation in procurement

and implementation of the program Capacity building activities need to be undertaken

in order to build and sharpen their existing skills for management and for sustaining

all activities related to project implementation.

6.2 BENEFITS OF COMMUNITY PROCUREMENT

6.2.1 The benefits of involving community in procurement include:

Enhancing community ownership

Increasing capacity of the community

Generating employment and economic opportunities within the community.

Lessening the burden of procurement on Government implementing agencies.

6.2.2 The merits of community procurement refer to:

Ownership by the community

Command over the entire process

Sharing of capital investment of the project

Simplicity

Useful in operation and maintenance

6.2.3 It needs to be noted that community involved procurement, must not compromise

with the principles of competitiveness and transparency of the process. It is planned to

suit the capacity of the community in rural environment.


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6.3 KEY RULES OF COMMUNITY PROCUREMENT

6.3.1 Following seven rules shall be observed and complied with during the procurement of

works and goods:

Transparency: All procurement procedures must be carried in an open and

transparent manner displaying all the details of procurement at prominent

places in the villages.

Equal opportunity to all Suppliers: Equal opportunity must be given to all

suppliers interested in supplying items to the community and uniform

evaluation procedures must be adopted.

Accountability: Any office bearer or committee member undertaking

procurement function remains accountable for all decisions and actions taken.

Ensuring value of money: Items procured should meet the required technical

specifications and the quality standards, and must be arranged at reasonable

prices.

Avoid procurement of item from Friends and Relatives: Procuring items

from close relatives and friends of any of the office bearers must be avoided.

No undue benefits for anyone: No members of the community shall accept

directly or indirectly any undue benefits or advantages on account of a

procurement action.

Equal Pay for Equal work: There should not be any distinction of wages

between male and female workers and other benefits.

6.4 REQUIREMENTS OF COMMUNITY PROCUREMENT

6.4.1 Quality Assurance: Procurement of goods and materials having ISI certification

from authorized vendors of manufacturers shall be the first step in obtaining prescribed quality of goods/ materials.

6.4.2 Quantity Assurance: Quantities strictly required to execute the work satisfactorily

shall always be worked out prior to scheduling the procurement. Purchase of excess

goods/ materials always results in loss and wastage.

6.4.3 Timing: Appropriate timing of delivery of goods/ materials matching with

commencement and completion of work shall always be adhered to. Any gap might

lead to either excess holding of material or to delay the completion of work, which

may result in cost over-run, adversely affecting the financial viability of the project.

6.4.4 Rates: The rates for materials, goods to be procured should be reasonable and

commensurate with quality and comparable with purchases being affected for similar

projects.


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6.5 PROCUREMENT OF WORKS BY COMMUNITY

6.5.1 In addition to the procurement to be under taken by PEAs and SPMU, there is a small

community driven procurement for Entry point activities, livelihood activities and

Plantation. In the project the community is being given the responsibility to

implement the project .Each state is planning to undertake different projects through

the community. The likely works to be undertaken by the community are as under:

For the PEAs involved in the National Components

Mangroves plantation

Entry point activities

Other livelihood enhancement works

For the State Of Gujarat

Mangroves plantation;

Entry point activities like Water Harvesting Activities, Rain Water Harvesting,

SMC Work - Ground Water Recharging, Stall Feeding Promotion activities ,

Salinity Prevention, Cyclone cum multipurpose buildings Bund, Alternative

Energy Resources development, Bio shield & Fodder Development, Goods

and Equipment.

For the State Of Orissa

Crab fattening

Dairy & Gotary (Integration)

Value addition of fishery products

Other livelihood enhancement works.

For the State Of West Bengal

Mangroves plantation

Entry point activities

Other livelihood enhancement works.

6.5.2 Mangrove plantation mostly involves labour. Seeds collection also involves labour

and transportation. Besides labour a small percentage of the expenditure would be on

purchase of Polythene bags. Entry point activities would mostly involve civil works.

Same would be the case with crab fattening and value addition of fishery products.

6.5.3 Before the funds are released to the community an MOU will be signed between

implementing agencies and communities to undertake works.

6.6 Approved Community Procurement Manual

6.6.1 A separate Community Procurement Manual has been prepared for the Project which

has already been approved by the World Bank. All community procurement in the

Project will be as per details and procedures of such approved Community

Procurement Manual.


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Annexure

(Procurement Formats)


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Enclosures


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ENCLOSURE – 1

GOVERNMENT OF -------------

DEPARTMENT OF -----------------------------

INTEGRATED COASTAL ZONE MANAGEMENT PROJECT

(WORLD BANK ASSISTED)

INVITATION FOR BIDS (IFB)

NATIONAL COMPETITIVE BIDDING

Date:

Bid No.: SPMU/________/____

1. The Government of India has applied for a credit from the International Development

Association towards the cost of Rs.___________ for the Govt. of __________, Integrated

coastal Zone Management Project and intends to apply a part of the funds to cover eligible

payments under the contract for the construction of works as detailed below.

2. ____________, invites bids for the _________________works detailed in the table. The bidders

may submit bids for any or all of the following works:

Package

No.

Name of

Work

Approx. value of

work (Rs. in

lakhs)

Bid Security

(Rs. in lakhs)

Cost of

document

(Rs.)

Period of

completion in

months

1 2 3 4 5 6

…….. ………. ……………. ………….. ………… …………..

…….. ………. ……………. ………….. ………… …………..

…….. ………. ……………. ………….. ………… …………..

…….. ………. ……………. ………….. ………… …………..

3. Bidding documents (and additional copies) may be purchased from the office of

_______________________ from _____to _____________(dates with period of minimum 30

days) for a non-refundable fee of Rs._____________(Each set) as indicated, in the form of cash

or Demand Draft on any Scheduled Bank payable at ___________ in favour of .

_____________. Interested bidders may obtain further information at the same address. Bidding

documents requested by mail will be dispatched by registered/ speed post on payment of an

extra amount of Rs.500.00. The __________ will not be held responsible for the postal delay if

any, in the delivery of the documents or non-receipt of the same.

4. Bids must be accompanied by bid security of the amount specified for the work in the table

above payable at _______________drawn in favour of ________________. Bid security will

have to be in any one of the forms as specified in the bidding document and shall have to be

valid for 45 days beyond the validity of the bid.

5. Bids must be delivered _____________, on or before _________ hours on date ___________

and will be opened on the same day at _________ hours, in the presence of the bidders who

want to attend. If the office happens to be closed on the date of receipt of the bids as specified,

the bids will be received and opened on the next working day at the same time and venue.

6. A pre bid meeting will be held on ________________ (preferably mid of bidding process) at

_____________are in the O/o _____________ to clarify the issues and to answer questions on

any matter that may be raised at that stage as stated in clause 9.2 of Instructions to Bidders of

the Bidding Document.

6. Other details can be seen in the bidding documents.

_______________________


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ENCLOSURE - 2

MINUTES OF BID OPENING – (NCB Goods/Works)

________________________________________________Project

Loan No./Credit No. : ________________________________

Basic Data Sheet

1. Package Number

:

2. Item/Work Description

:

3. Estimated Value

:

4. Date of issue of IFB

:

5. Mode of Procurement

:

6. (a) Deadline for submission of bids

(date and time)

: _____________ at __________hours

(b) Bid opening date and time

: _____________at__________hours

7. No. of Bidding Documents Sold

:

8. Number of bids received

:

9. Bid Validity expires on

:

Signature of the bid opening officer: _______________

(Bid Opening Committee)

Name of bid opening officer: _______________

(Bid Opening Committee)

Title of the bid opening officer:: _______________


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(Name of the Project)

RECORD OF BID OPENING (NCB)

Loan Number :______________

Credit Number: ______________

Package Number : _______________________

Description of Item / Work:________________________________________________

1. The following bids received by closing date and time i.e. _________hours on

__________, were publicly opened in the presence of the bidders representatives listed below

at __________hours on ____________(date)

S.

No.

Number of Bidder Group Bid Security in

Rupees

Bid Amount *

(CIP

Destination/

In Rupees)

Discount

offered, if any

(modifications

or withdrawals)

Alternative

offer, if any

Amount

Validity

1.

2.

3.

4.

5.

2. The following representatives of bidders are present during the bid opening :

S. No. Name of

Representative

Signature Name of Bidder/ Name* of

Manufacturer if

different from

bidder

3. Complaints, if any:

Signature, Name and Designation of the Bid Opening Officer’s (Bid Opening Committee) :

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

4. ________________________________________________________________

*Modify as required for each case

…………………………….


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ENCLOSURE – 3

SUGGESTED FORMAT FOR BID EVALUATION REPORT FOR CIVIL WORKS (NCB)

1. Scope of contract and approximate cost:

- Outline brief description of works covered by invitation.

- Furnish estimated cost at the time of appraisal and the actual cost for the proposal

contract.

2. Bidding Document :

Furnish the following details and discuss:

- Approval by World Bank/ Govt.

- Variations from the approved document, if any.

- Specifications and drawings (approval)

- Implementation schedule and stipulated time for completion.

- Important bidding conditions, such as, price adjustment, if any etc.

(Enclose copy of bidding document with amendments if any, if not sent earlier,

Annexure I).

3. Bid Invitation Process:

Furnish the following details and discuss:

- Bid invitation advertisement in national press, name of news papers and dates of

publication.

- Dates the bidding document was available for sale.

- Number of bidders who purchased the bidding documents and their nationality.

- Prebid conference, minutes of meeting and resulting amendments, if any.

- Date and time of public bid opening, attendance, highlights of the bid opening

meeting, etc.

(Enclose copies of Bid Invitation, Prebid minutes, minutes of bid opening – Annexure

II, III & IV).

4. Bid Response :

- State number of offers received and the nationality.

- Furnish details of offers received:

(i) In time :

(ii) Late :

------------

Total :

- Furnish table of bid prices as read out at the bid opening meeting and as converted

(in increasing order of bid value):

Sl. No. Name of bidder Nationality Bid price

as read out

Remarks

……….. ………………….. ……….. ……………….

……….. …………………. ………… ………………

……….. ………………….. ……….. ……………….

……….. ………………….. ……….. ……………….

5. Clarifications obtained, if any:

6. Preliminary Examination of Bids:

- Discuss preliminary examination for eligibility (ITB Clause 3), arithmetical

errors, completeness, legal validity (has been properly signed and has submitted


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power of attorney etc.), bid validity, bid security and substantial responsiveness to

commercial and technical aspect of bidding documents.

- Furnish details of all bids in Annexure – V.

- List the bids rejected as non-responsive.

Sl. No. Name of bidder Bid price

Brief reasons for

rejection

……… ………………………. ……………… …………………………..

……… ………………………. ……………… …………………………..

……… ………………………. ……………… …………………………..

……… ………………………. ……………… …………………………..

……… ………………………. ……………… …………………………..

7. Evaluation of Substantially Responsive Bidders:

- State evaluation criteria and methodology cross-referencing to bid documents.

- Discuss conditions, if any and loading of bid prices.

- Prepare evaluation table showing the rankings as under:

Rank Bidder Bid Price

1 ……… ……….

2. ……… ……….

3 ……… ……….

(Furnish details as in Annexure VI)

- Discussion of offers:

- Determination of lowest evaluated responsive bid.

- Comments on unbalanced item bids, if any.

8. Subcontracting

- Comment on sub-contracting proposed and discuss qualifications/experience of

sub-contractors determining whether it is acceptable.

9. Post –qualification/ Verification for prequalified bidders:

- Furnish actual qualification of selected bidder and determine whether the selected

lowest evaluated responsive bidder is qualified to satisfactorily perform the

contract. (Annexure VII) [To qualify for a package of contacts made up of this

and other contracts for which bids are invited, the bidder must demonstrate

having experience and resources sufficient to meet the aggregate of the qualifying

criteria for the individual contracts.]

- If the determination is negative, bid of the lowest bidder will have to be rejected

and the next lowest evaluated bid considered to make a similar determination of

bidder’s capability to perform satisfactorily.

- Discuss bid capacity – Attach calculations sheet to show how they possess the

capacity.

10. Construction Methodology

- Discuss the proposed construction methodology and other details of the selected

bidder [submitted by him in terms of Clause 4.3 (k) of ITB] and comment on its

acceptability.


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11. Recommendations:

- Furnish important features of bid recommended for award such as:

- Advances

- Price adjustments, if any

- Performance security

- Additional security proposed for unbalanced bids, if any

- Bid validity

- Stipulated period of completion

- Other important terms and conditions

12. Value of contract proposed for approval:

Signature of Evaluating Officer

(Enclose checklist duly filled) Enclosures (enclose only those which were not forwarded earlier):

1. Copy of bidding document (Annex I)

2. Copy of bid invitation and press advertisement (Annex II)

3. Prebid minutes and Copies of Amendments, if issued (Annex III)

4. Minutes of Bid Opening (Annex IV)

5. Assessment of Bids (Annex V)

6. Comparative statement of Offers (Annex VI)

7. Details of post-qualification / verification of prequalified bidders (Annex VII)

8. Details of Recommended Bidder (Annex VIII)


94 of 132

Annexure-V/ 1

(to Enclosure 3)

Assessment of Bids

S1.

No.

Particulars Bidder 1

…………

Bidder 2

………...

Bidder 3

…………

Bidder 4

…………

Bidder 5

………...

1. Name of Bidder

2. Country of Origin

3. Bid Price

4. Credentials

Letter of

Authorisation

5. Commercial

Assessment *

6. Technical

Assessment *

7. Decision on

Responsiveness

8. Capacity cum

Capability*

Assessment (Post/

Prequalification)

*For details see attachment


95 of 132

Annexure - V/2

(to Enclosure 3)

EVALUATION OF THE BIDS

Analysis for Responsiveness of Bid:

S1.

No.

Particulars and Clause

Reference

Name of Bidder

1

..................

Name of Bidder

2

……………

Name of Bidder

3

…………..

1.

Validity of Bid ITB 15

2. Bid Security *

5.1 Form of

Bid

Security

5.2 Bank and

Branch

5.3 Expiry Date

5.4 Amount

ITB 16

3. Letter of

Authorization

ITB 18.2

4. Bid Form

ITB 12.1

5. Exceptions to

Clauses, if any:

6. Unbalanced

Bids

ITB 29.5

7. Price

Adjustment, if

suggested

ITB 13.4

8. Technical

Deviations, if

any

9. Decision on

Commercial

Responsiveness

Note: [a] Add parameters as required to suit the item under procurement & as specified in your bidding document


96 of 132

Annexure-VI

(to Enclosure 3)

COMPARATIVE STATEMENT OF OFFERS

S1.

No.

Item of Bill of

Quantities

Quantity Unit Estimate

Bidder 1 Bidder 2

Rate

in

Rs.

Value

In Rs.

Rate

in Rs.

Value

In Rs.

Rate

in Rs.

Value

In Rs.

Grand Total:


97 of 132

Annexure VII

(to Enclosure 3)

POST QUALIFICATION

Criteria as specified in the bidding

document *

Bidder 1

Bidder 2

Bidder 3

1.

2.

3.

4.

Note: 1(*). List all criteria specified in the bidding document and give comments on how

bidder meets or fails in criteria.

2. Give details for the recommended bidder and other lower bidders whose offer is

evaluated as non-responsive / who have been determined as not meeting with this

criteria.


98 of 132

Annexure VIII

(to Enclosure 3)

DETAILS OF RECOMMENDED OFFER

1. Total Value of Bid in Rupees :

2. Advances: Mobilization / Equipment :

3. Performance Security :

4. Additional Performance Security for :

Unbalanced Bids, if any

5. Retention Money :

6. Milestones to be Achieved :

7. Liquidated Damages for different milestones :


99 of 132

ENCLOSURE - 4

SUGGESTED FORMAT OF BID EVALUATION REPORT FOR

GOODS & EQUIPMENT (NCB)

1. Scope of contract and approximate cost:

- Outline brief description of goods and services covered by invitation.

- Furnish estimated cost at the time of appraisal and the actual cost for the proposal

contract.

2. Bidding Document:

Briefly discuss and indicate:

- Details of approval by World Bank/ Govt.

- Variations from the approved document, if any.

- Specifications (approval reference, if any)

- Requirement of accessories/spares, if any

- Delivery requirements.

- Important bidding conditions, such as:.

- price adjustment

- load for

(a) delivery schedule

(b) payment schedule

(c) performance and productivity

(d) operating and maintenance costs

(Enclose copy of bidding document and amendments if any, if not sent earlier,

Annexure I).

3. Bid Invitation Process: Furnish the following details:

- Date of publication of general procurement notice

- Bid invitation advertisement in national press, Newspapers and dates of

publication.

- Period in which the bidding documents were made available for sale.

- Number of firms who purchased the bidding documents and their nationality.

- Date of closing and extensions, if any

- Prebid conference, minutes of meeting and resulting amendments, if any.

- Date and time of public bid opening, attendance, highlights of the bid opening

meeting, etc.

[Enclose copies of Bid Invitation, Prebid minutes (Annex II) and minutes of bid opening

(Annexure III)].

4. Bid Response :

- State number of offers received and the nationality.

- Furnish details of offers received:


100 of 132

(iii) In time =

(iv) Late =

---------------

Total =

- Furnish Table of bid prices as read out at the bid opening (in ascending order):

Sl. No. Name of bidder Nationality Bid price as read

out

Remarks

……… ……………….. …………….. …………………….

……… ……………….. …………….. …………………….

……… ……………….. …………….. …………………….

……… ……………….. …………….. …………………….

……… ……………….. …………….. …………………….

5. Clarifications obtained, if any:

6. Preliminary Examination of Bids:

- Discuss preliminary examination for eligibility (ITB Clause 3), arithmetical

errors, completeness, legal validity (has been properly signed and has submitted

power of attorney etc.), bid validity, bid security and substantial responsiveness to

commercial and technical aspects of bidding documents.

- List arithmetical errors and corrected bid price.

- Furnish details of all bids in Annexure – IV.

- List the bids rejected as non-responsive.

Sl. No. Name of bidder Bid price

Brief reasons for

rejection

…….. ……………………. …………….. ………………………….

…….. ……………………. …………….. ………………………….

…….. ……………………. …………….. ………………………….

…….. ……………………. …………….. ………………………….

7. Evaluation of substantially Responsive Bidders:

- State evaluation criteria, methodology cross-referencing to bid documents,

assumptions, if any, made in evaluation (Annexure V).

- Discuss briefly offers and adjustment, if any for.

- Commercial aspects:


101 of 132

O omissions

O inland transportation

O delivery

O deviation in payment schedule

O spare parts

O operation and maintenance

O performance and productivity etc.

- Technical criteria :

O efficiency

O productivity

O training etc.

- Prepare evaluation table showing the rankings as under:

Rank Name of bidder/ Evaluated CIP

Manufacturer/ Agent destination price

1 ………………. ………………..

2 ………………. ………………...

3 ………………. ………………..

(Details in Annexure VI)

- Brief discussion of offers:

- Determination of lowest evaluated responsive bidder.

8. Post –qualification:

- State criteria, if any, outlined in the bid document.

- Discuss actual qualification of selected bidder and determine whether the selected

lowest evaluated responsive bidder is qualified to satisfactorily perform the

contract.

[ If the determination is negative, lowest bid will have to be rejected and the next lowest

evaluated bid considered for similar determination of bidder’s capability to perform

satisfactorily. To qualify for a package of contacts made up of this and other contracts for

which bids are invited, the bidder must demonstrate having experience and resources

sufficient to meet the aggregate of the qualifying criteria for the individual contracts.]

(Details in Annexure VII)

9. Recommendations:

- Furnish important features of bid recommended such as:

o Bidders name

o Model, quantity and total bid price for :

- basic machine


102 of 132

- list of tools

- list of special accessories

- list of 2 years maintenance spares

- Other Services

Total Rs. ____________

o Source of origin

o Payment terms

o Agency commission

o Delivery

o Inspection

o Insurance

o Freight

o Performance security

o Specifications

o Other important terms and conditions

- Date of expiry of validity of the selected bid

(Enclose contract information sheet of selected bidder, Annexure VIII)

Signature of Evaluating Officer

Signature of Competent Authority

Enclosures (enclose only those which were not forwarded earlier):

1 Copy of bidding document (Annex I)

2 Prebid minutes (Annex II)

3 Minutes of bid opening (Annex III)

4 Details of assessment of bids (Annex IV)

5 Assessment made in evaluation (Annex V)

6 Evaluated bid prices of offers (Annex VI)

7 Details of post-qualification (Annex VII)

8 Contract information and selected bidder (Annex VIII)


103 of 132

Annexure IV/I

(to Enclosure 4)

6.7 Assessment of Bids

Sl.

No.

Particulars Name of

Bidder 1

………….

Name of

Bidder 2

………….

Name of

Bidder 3

………….

Name of

Bidder 4

………….

Name of

Bidder 5

………….

1. Manufactured by

2. Country of

Origin

3. Agent

4. Classification

5. Model Offered

6. Model Number

7. Total Bid Price

8. Total Cost per

unit as per Bid

document in

Indian Rupees

9. Credentials

……………

Letter of

Authorization

10. Commercial

Assessment*

11. Technical

Assessment*

12. Decision on

Responsiveness

* For details see attachment.


104 of 132

Annexure IV/2

(to Enclosure 4)

6.8 EVALUATION OF THE BIDS

Commercial Analysis for Responsiveness of Bid:

Sl.

No.

Particulars Name of

Bidder 1

………….

Name of

Bidder 2

………….

Name of

Bidder 3

………….

1.

2.

3.

4.

Model Offered

Model No.

Manufd. By

Country of

Origin

ITB

2

5. Bid Security

5.1 Form of Bid

Security

5.2 Bank and

Branch

5.3 Expiry Date

5.4 Amount

IRB 15

6. Validity of Bid ITB 16

7. Letter of

Authorisation

ITB 13.3

(a)

8. Bid Form ITB 9.1

9. Exception to :

Delivery:

ITB

26.5(b)

Payment

Terms; and

ITB 26.5(c)

Others

10. Bid Currency ITB 12

11 Performance

Statement

ITB 13.3

(b)

12. Decision on

Commercial

Responsiveness

Note [a] Add parameters as required to suit the item under procurement and as specified in

your bidding document.

[b] Bid security of Joint Venture must be in the name of all the partners in the Joint

Venture submitted the bid.


105 of 132

Annexure IV/3

(to Enclosure 4)

Technical Evaluation of the Bids:

Sl.

No.

Particulars Technical

Specifications

Clause

Reference

Name of

Bidder 1

………….

Name of

Bidder 2

………….

Name of

Bidder 3

………….

1.

Model No.

2. Mfd. By*

3. Model Type

4.

5.

6.

7.

8.

9.

10.

11.

12

13.

14. Decision on

Commercial

Responsiveness

a) List the mandatory and optional features which are checked and compared as

detailed in technical specifications to determine on conformity to technical

specifications.

b) This should also cover all deviations listed by bidder in response to Clause 14.3

(c) of ITB


106 of 132

Annexure V

(to Enclosure 4)

Brief details of Assumptions made in Evaluation

a)

b)

c)

d)


107 of 132

Annexure VI

(to Enclosure 4)

Comparative Statement of Responsive Offers

Items Price

(Groups A and B separately)

Cost per unit (in Rs.)

Bidder’s Name

…………

Bidder’s Name

…………

Bidder’s Name

…………

1. Ex-factory/ex-showroom/ ex-

warehouse or Off – the Shelf

prices

2. Excise duty (if quoted

separately)

3. Packing & forwarding charges

4. Inland freight

5. Insurance

6. Other charges, if any

TOTAL

7. Discounts, if any

8. Total unit cost as quoted

9. No. to be supplied

10. Total cost as quoted

11. Delivery period offered

12. Delivery period loading

13. Payment terms loading

14. Other loadings

15. Total evaluated price with

loading

16. Ranking


108 of 132

Annexure VII

(to Enclosure 4)

POST QUALIFICATION

Criteria as specified in the bidding document * Bidder 1 Bidder 2 Bidder 3

1.

2.

3.

4.

Note 1 (*) List all criteria specified in the bidding document and give comments

on how bidder meets or fails in criteria.

2. Give details for the recommended bidder and other lower bidders whose offer

is evaluated as non-responsive / who have been determined as not meeting

with this criteria.


109 of 132

Annexure VIII

(to Enclosure 4)

Details of Recommended Offer

Name of Bidder ________________________

Sl.

No.

Name of Item Specification or

Part No.

Unit Qty. Rate Value

1. Basic Item

2. List of Tools

3. List of Special accessories

and spares

4. List of spares for 2- year

maintenance

5.

(iii) Total Cost


110 of 132

ENCLOSURE -5

PRICE ADJUSTMENT FORUMULA

The formula (e) for adjustment of prices are :

R = Value of work

Adjustment for Labour component

(i) Price adjustment for increase or decrease in the cost due to Labour shall be paid

in accordance with the following formula:

VL = 0.85 × P1/100 × R (L1 – Lo)/Lo

VL = increase or decrease in the cost of work during the quarter under

consideration due to changes in rates for local labour.

Lo = the average consumer price index for industrial workers for the State

for the quarter preceding the date of opening of Bids as published by Labour

Bureau, Ministry of Labour, Government of India.

L1 = the consumer price index for industrial workers for the State for the

quarter under consideration as published by Labour Bureau, Ministry of Labour,

Government of India.

P1 = Percentage of Labour component of the work.

Adjustment for cement component

(ii) Price adjustment for increase or decrease in the cost of cement procured by the

contractor shall be paid in accordance with the following formula:

Vc = 0.85 × Pc /100 × R × (C1 – Co)/Co

Vc = increase or decrease in the cost of work during the quarter under

consideration due to change in rates for cement.

Co = The all India average wholesale price index for cement for the quarter

preceding the date of opening of Bids as published by the Ministry of Industrial

Development, Government of India, New Delhi.

C1 = The all India average wholesale price index for cement for the quarter

under consideration as published by Ministry of Industrial Development,

Government of India, New Delhi.

Pc = Percentage of cement component of the work.

Adjustment for steel component

(iii) Price adjustment for increase in the cost of steel procured by the Contractor

shall be paid in accordance with the following formula.

VS = 0.85 × PS/100 × R × (S1-So)/So

VS = Increase or decrease in the cost of work during the quarter under

consideration due to changes in the rates for steel.

So = The all India average wholesale price index for steel (Bars and Rods) for

the quarter preceding the date of opening of Bids as published by the Ministry

of Industrial Development, Government of India, New Delhi.


111 of 132

S1 = The all India average wholesale price index for steel (Bars and Rods) for

the quarter under consideration as published by the Ministry of Industrial

Development, New Delhi.

PS = Percentage of steel component of the work.

Note: For the application of this clause, index of Bars and Rods has been chosen to represent steel group.

Adjustment of POL (fuel and lubricant) component

(iv) Price adjustment for increase of decrease in the cost of POL (fuel and lubricant)

shall be paid in accordance with the following formula:

Vf = 0.85 × Pf/100 × R × (Fi-Fo) / Fo

Vf = Increase or decrease in the cost of work during the quarter under

consideration due to changes in rates for fuel and lubricants.

Fo = The average official retail price of High Speed Diesel (HSD) at the

existing consumer pumps of IOC at nearest center on the day 30 days prior to

the date of opening of Bids.

F1 = The average official retail price of HSD at the existing consumer pumps

of IOC at nearest center for the 15th day of middle calendar month of the

quarter under consideration.

Pf = Percentage of fuel and lubricants component of the work.

Note : For the application of this clause, the price of High Speed Diesel oil has been chosen to represent fuel and lubricants group.

Adjustment of Plant and Machinery Spares Component

(v) Price adjustment for increase of decrease in the cost of plant and machinery

spares procured by the Contractor shall be paid in accordance with the following

formula :

Vp

= 0.85 x Pp / 100 x R x (Pi – Po) / Po

Vp = Increase or decrease in the cost of work during the quarter under

consideration due to changes in rates for plant and machinery spares.

Po = The all India average wholesale price index for heavy machinery and

parts for the quarter preceding the date of opening of Bids s

published by the Ministry of Industrial Development, Govt. of India,

New Delhi.

Pi = The all India average wholesale price index for heavy machinery and

parts for the quarter under consideration as published by Ministry of

Industrial Development, New Delhi.

Pp = Percentage of plant and machinery spares component of the work

Note:For the application of this clause, index the Heavy Machinery and Parts has been chosen

to represent the plant and Machinery Spares group.


112 of 132

Adjustment of Local materials Component

(vii) Price adjustment for increase of decrease in cost of local materials other than

cement, steel, bitumen and POL procured by the Contractor shall be paid in accordance

with the following formula :

Vm = 0.85 x Pm,/ 100 x R x (Mi – Mo)/Mo

Vm = Increase or decrease in the cost of work during the quarter under

consideration due to changes in rates for local materials other than

cement, steel and POL.

Mo = The all India average wholesale price index (all commodities) for the

quarter preceding the date of opening of Bids, as published by the

Ministry of Industrial Development, Govt. of India, New Delhi.

Mi = The all India average wholesale price index (all commodities) for the

quarter under consideration as published by Ministry of Industrial

Development, Govt. of India, New Delhi.

Pm = Percentage of local material component (other than cement, Steel

and POL) of the work.

The following percentage will govern the price adjustment for the entire contract:

1. Labour-P1 ___%

2. Cement-Pe ___%

3. Steel-Ps ___%

4. POL-P1 ___%

5. Plant & Machinery Spares-Pp ___%

6. Other Materials-Pm ___%

7 Total : 100%

Note : [ The percentage of various components shall be determined for each work based

upon its scope of work]


113 of 132

ENCLOSURE - 6

FORMAT FOR SEEKING BANK’S CLEARANCE FOR INCREASE IN

CONTRACT VALUE BEYOND 15% OF THE ORIGINAL CONTRACT VALUE AS

WELL AS FOR GRANTING EXTENSION OF THE STIPULATED TIME FOR

PERFORMANCE OF THE CONTRACT

(For all Agreements Valued Rs. 45.00 lakhs and above)

Credit/ Loan No. …………………….

Name of the Project …………………….

Sub Project …………………….

1. WBR No. : ……………………………………….

2. Contract No. (Agreement)

:

:

………………………………and

date ……………………………

3. Name of Contractor

: ……………………………………….

4. Description of work

: ……………………………………….

5. a) Original Contract Value

b) Anticipated increased contract

value as of date

:

:

………………………………………

………………………………………..

6. Bank’s no objection to the contract

communicated on

: ……………………………………….

7. a) Completion date as per contract : ……………………………………….

b) Completion date as revised now : ……………………………………….

c) Expected date of completion

: ……………………………………….

8. Amount of increase in contract value

anticipated

% w.r.t. original contract value

:

:

……………………………………….

……………………………………….

9. Breakup for the increase in value of contract due to :

a) Price adjustment

: ……………………………………….

b) Extra Items

: ……………………………………….

c) Variation in Quantities

: ……………………………………….

d) Contract or Claims

: ……………………………………….


114 of 132

1) Arbitration

: ……………………………………….

2) Other reasons

: ……………………………………….

e) Exchange Variation

: ……………………………………….

(iv) Total

: ……………………………………….

10. Comments on reasons for the increase

in contract value as * well as reasons

for extension of the stipulated time for

performance

* (use additional sheet where

necessary)

……………………………

Chief Engineer,

……………………………

Superintending Engineer ……….Circle

…………………..


115 of 132

Enclosure - 7

PROCUREMENT

CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD

FOR CIVIL WORKS

1. Name of the Project

: ………………………………………

2. Procurement Package Number and

Procurement Plan reference

: ………………………………………

3. Description of works

: ………………………………………

4. Estimated cost of works

: ………………………………………

5. Stipulated time of completion (including

non-working season)

: …………………………(in months)

6. Type of contract

: ICB/NCB

7. Whether the bidders were prequalified

and, if so, attach details as per

Annexure- I.

: Yes/No

8. Date of clearance of bidding document

by Bank

: ………………………………………

10. 46

When the bid notice was published in

UNDB?

: ………………………………………

11. Publicity

(National Press – Name and Date of

Publication)

:

:

:

1. …………………………………

2. …………………………………

3. …………………………………

12. Dates when the bidding documents were

made available for sale

: From……………to…………………..

13. Number of bidding documents

purchased by prospective bidders

: ………………………………………

a) Domestic : ………………………………………

b) Foreign

: ………………………………………

14. Prebid conference held on

(Scheduled it at about mid of bidding

time

: ………………………………………

15. Date of clearance of prebid conference

minutes by the Bank

: ………………………………………

1 Not applicable for NCB


116 of 132

16. Last date of receipt and date of opening

of bids (both should be the same)

: ………………………………………


a) Domestic : ………………………………………

b) Foreign

: ………………………………………

18. Date of clearance of award by the Bank

(No Objection cable)

: ………………………………………

19. Award amount as cleared by the Bank

: Currency Amount

…………… ………………..

20. Amount of contract

Currency Amount

…………… ………………..

21. Date of signing of the Contract

: ………………………………………

22. Contract Number

: ………………………………………

23. Name and nationality of the contractor

: ………………………………………

24. Whether the contract includes price

adjustment Clause ?

: Yes/ No

25. Date of start of work

: ………………………………………

26. Stipulated period of completion

: ………………………………………

27. Performance Security

: Percentage Deduction Total not

Initial (%) from bills (%) exceeding

a) Amount and currencies in proportion

to the currencies of payment

: ……….. ……….. ………..

b) Additional Security for unbalanced

bids, if any

: ……….. ……….. ………..

c) Defects liability period

: ……………………………months

d) Validity as required : ……………………………months

e) Has the successful bidder furnished

the performance security in various

currencies in an acceptable form with

Clarify reasons for variation if any from the value as cleared by the Bank vide S. No. 20


117 of 132

validity in accordance with the

conditions of contract: If so, indicate

i) Form

ii) Amount

iii) Validity

(Attach copy of Instrument)

:

:

:

………………………………………

………………………………………

………………………………………

28. Reasons for delay, if any, in forwarding

the confirmed copy of the contract.

(Contracts along with the checklist,

should be forwarded to the Bank within

ten days of signing of agreement)

:

:

:

:

:

………………………………………

………………………………………

………………………………………

………………………………………

………………………………………

29. Any other remarks (attach sheet, if

necessary)

: ………………………………………

………………………………………

………………………………………

………………………………………

30. Has the letter of appointment of

Adjudicator been issued following the

suggested format

: Yes/ No

………………………………………

………………………………………

………………………………………

Signature : ……………………..

Name: ……………………..

Designation : ……………………..

Dated: …………………..


118 of 132

ANNEXURE I

(to Enclosure 7)

PREQUALIFICATION DETAILS

1. Date of clearance of prequalification

document by the Bank

: ………………………………………

2. Date of prequalification : ………………………………………

3. When the pre-qualification notice was

published in UNDB?

: ………………………………………

4. Publicity : (National press – Name and

Date of publication

: 1…………………………………….

2…………………………………….

3…………………………………….

5. Dates when prequalification documents

were made available for sale

(ICB – 45 to 90 days/

LCB – 30 to 60 days)

: From……………To…………………

6. Last date of receipt of prequalification

application and date of opening

: ………………………………………

7. Date of prequalification conference

(Schedule it at about mid of the time

given to applicants)

: ………………………………………

8. Date of clearance of prequalification

conference minutes by the Bank

: ………………………………………

9. No. of applicants who

a) purchased the prequalification

documents

- Domestic

- Foreign

:

:

:

………………………………………

………………………………………

………………………………………

b) submitted the prequalification

application

- Domestic

- Foreign

:

:

:

………………………………………

………………………………………

………………………………………

c) are prequalified

- Domestic

- Foreign

:

:

:

………………………………………

………………………………………

………………………………………

d) Date of clearance of pre-qualification

by Bank

: ………………………………………

Signature ………………………

Name …..……………………

Designation ……………………


119 of 132

ENCLOSURE - 8

PROCUREMENT

CHECKLIST FOR CONTRACTS ABOVE PRIOR REVIEW THRESHOLD

FOR GOODS AND EQUIPMENT

1. Name of the Project

: ………………………………………

2. Procurement Package Number

: ………………………………………

3. Procurement Plan Reference:

: ………………………………………

4. Description of Goods

: ………………………………………

5. Estimated cost of Goods

: Rs.………………………………lakhs

6. Stipulated time of completion

: …………………………(in months)

7. Type of contract

: ICB/NCB

8. Whether the Bidding Document was

cleared by the Bank? If yes, when ?

Give reference.

: Yes/No

9. Date of invitation of bids

: ………………………………………

10. 1When the bid notice was published in

UNDB?

: ………………………………………

11. Publicity

(National Press – Name and Date of

Publication)

:

:

:

1. …………………………………

2. …………………………………

3. …………………………………

12. Dates when the bidding documents were

made available for sale (ICB – 45 to 90

days/ LCB – 30 to 90 days)

:

From……………to…………………..

13. Number of bidding documents

purchased by prospective bidders

: ………………………………………

a) Domestic : ………………………………………

b) Foreign

: ………………………………………

14. Prebid conference held on

(Scheduled it at about mid of bidding

time)

: ………………………………………

15. Date of clearance of Prebid Conference

minutes by the Bank

: ………………………………………


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16. Last date of receipt and date of opening

of bids (both should be the same)

: ………………………………………


a) Domestic : ………………………………………

b) Foreign

: ………………………………………

18. Date of clearance of award by the Bank

(No Objection cable)

: ………………………………………

19. Award amount as cleared by the Bank : Currency Amount

…………… ………………..

20. Amount of contract

Currency Amount

…………… ………………..

21. Date of signing of the agreement

: ………………………………………

22. Contract Number

: ………………………………………

23. Name and nationality of the Supplier

: ………………………………………

24. Whether the contract includes price

adjustment clause ?

: Yes/ No

25. Date of start

: ………………………………………

26. Stipulated time of completion

: ………………………………………

27. Performance Security

: ……………………………………%

a) Amount in the currency of contract

: ………………………………………

b) Warranty period

: ……………………………months

c) Stipulation time of completion plus

warranty period

: ………………………………………

d) Has the successful bidder furnished

the performance security in various



conditions of contract: If so, indicate

: ………………………………………

i) Form : ………………………………………

Clarify reasons for variation if any from the value as cleared by the Bank vide S. No. 20


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ii) Amount

iii) Validity


:

:

………………………………………

………………………………………

28. Reasons for delay, if any, in forwarding

the confirmed copy of the contract.

(Contracts along with the checklist,

should be forwarded to the Bank within

ten days of signing of agreement)

:

:

:

:

:

………………………………………

………………………………………

………………………………………

………………………………………

………………………………………

29. Any other remarks (attach sheet, if

necessary)

: ………………………………………

………………………………………

………………………………………

………………………………………


Name: ……………………..


Date: …………………..


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ENCLOSURE - 9

PROCUREMENT

CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS

FOR CIVIL WORKS

1. GENERAL :

1.1 Name of the Project

: ………………………………………

1.2 Procurement Package Number and

Procurement Plan Reference

: ………………………………………

1.3 Description of works

: ………………………………………

1.4 Estimated cost of works

: ………………………………………

1.5 Stipulated period of completion : …………………………(in months)

(including non-working season from

the date of award)

1.6 Whether the method of procurement

adopted is in accordance with the

Procurement Plan

: i) Yes /No ii) ICB/NCB

2. BIDDING DOCUMENT

2.1 Whether the bidding document used

for this work is according to the

standard model document cleared with

the Bank ?

: Yes/No

2.2 If no, list the deviation from standards: : 1. …………………………………..

2. …………………………………..

3. …………………………………..

2.3 Whether Package and Slices procedure

has been adopted? If so, have you

suitably modified the clause for

submission and evaluation of bids

: Yes/No

2.4 Whether price adjustment clause

provided:?

(Provide when period of completion is

more than 18 months)

Ensure that total percentage of labour

contractor’s materials and POL equals

100, if ‘R’ in the formula represents

net value of work done.

:

:

Yes/ No

Percentages

Labour Materials POL

………. ……… …….


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2.5 Whether bill of quantities and

specifications properly checked ?

(Provide schedule of quantity for each

slice separately and also one schedule

for the combined work. i.e. for the

package group in the same bidding

document).

: Yes/No

2.6 Bid Security :

a) Whether the guidelines have been

followed in fixing the Bid Security? If

not, give reasons

: Yes/ No

b) What is the percentage/ amount?

(No exemption should be

permitted to any bidder or any class of

bidders)

: ………………..%

Rupees……………………………….

2.7 Whether any preference on price or

other conditions allowed in the bidding

document/ award for any bidder or

class of bidders? If yes, list the

preferences. (No preferential treatment

should be given to any bidder or class

of bidders either for price or for

conditions unless specifically cleared

with the Bank and stipulated in the

Project Agreement.)

: Yes/ No

2.8 Does the bidding document provide for

advances?

If so, give details

What is the interest rate of advances ?

: Yes/No

………………………………………

………………………………………

2.9 a) What is the performance security

specified in the bidding document

:

Initial : Percentage Total

Deduction Not

(Value M) from bills exceeding

(%)

……….. …….. …………..

2.10 Cost of bidding documents : Rs……………………………………


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3.0 BID INVITATION AND ISSUE OF BIDDING DOCUMENTS:

3.1 Whether the bids for this work were

rejected previously and are being

reinvited? If yes, whether Bank’s

clearance was obtained? Give

reference (Bids should not be rejected

without Bank’s prior consultation)

: Yes/No

3.2 Date of invitation of bids

: ………………………………………

3.3 Publication of NIT

(give names of national newspapers

and date of publication)

: 1………………………………………

2. ……………………………………

3………………………………………

3.4 (a) Dates when bidding documents

were made available for sale;

(b) Sale period should generally be 30

to 90 days; if not, specify reasons)

: from………………to………………..

4.0 PRE BID CONFERENCE

4.1 Date of pre-bid conference

(Schedule it at about mid of bidding

time)

: ……………………………………….

4.2 Whether pre-bid minutes were cleared

with the Bank? When?

: Yes/No……………………………….

4.3 Was any amendment issued after pre-

bid conference?

: Yes/No

5.0 SALE AND RECEIPT OF BIDDING DOCUMENTS:

5.1 Last date of receipt of bids and the

date of opening of bids. (Both should

be the same)

: ……………………………………….

5.2 No. of documents purchased by

prospective bidders

: ……………………………………….

5.3 No. of bids received

: ……………………………………….

6.0 EVALUATION :

6.1 Has award been made to the lowest : Yes/No


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responsive bidder? (Give rank lowest,

or second lowest or third lowest, etc.

Award should be made to the lowest

responsive bidder.)

6.2 Give reasons for ignoring lower offers

if the lowest bidder is not awarded

: ……………………………………….

……………………………………….

6.3 a) Has the bidder who has been

awarded the contract furnished

information about his capability and

financial resources in response to

stipulations made in IFB?

: Yes/No

b) Are you satisfied that he has the

appropriate standards of capability and

financial resources to execute the work

satisfactorily?

Comment briefly.

: ……………………………………….

……………………………………….

……………………………………….

c) Does he meet the minimum criteria

for qualification, if any, specified in

the bidding document?

: Yes/No

6.4 Does the recommendation for award

confirm that minutes of pre-bid

conference were circulated to all

prospective bidders?

: Yes/No

6.5 Is the award to the lowest responsive

bidder conditional?

: Yes/No

6.6 Where any negotiations held with the

bidders after opening of bids? If yes,

whether Bank’s clearance was

obtained before holding negotiations

and when? If Bank’s clearance was not

obtained why ?

(Bank does not favour any

negotiations.)

: Yes/No

6.7 Whether the award was made within

the original bid validity?

: Yes/No

i) if no, list the reasons for delay

a) date of opening

b) date of award

:

:

:

……………………………………….

……………………………………….

……………………………………….

ii) if extension of bid validity was

sought, from all bidders and not from

the lowest alone?

: Yes/No


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iii) Was the period of extension

exceeded 4 weeks?

: Yes/No

iv) If affirmative, was Bank’s

clearance obtained?

: Yes/No

v) If yes, indicate date of clearance

: ……………………………………….


7.1 Name of contractor : ……………………………………….

7.2 Date of award of contract : ……………………………………….

7.3 Date of signing of contract : ……………………………………….

7.4 Contract value as awarded : ……………………………………….

7.5 Contract number and date : ……………………………………….

7.6 Date of start of work : ……………………………………….

7.7 Stipulated time of completion of work

: ……………………………………….

8.0 PERFORMANCE SECURITY :

8.1 Defects liability period

: ………………………………months

8.2 Validity as required

: ………………………………months

8.2 Validity as provided

: ………………………………months

8.3 Has the successful bidder furnished

performance: security in various



conditions of contract? If so, indicate:

: Yes/No

a) Amount and currencies in

proportion to the currencies of

payment

b) Form

c) Validity


: Rs……………………………………

……………………………………….

……………………………………….

9.0 ENCLOSURES :

9.1 Have the following been enclosed?

i) Minutes of pre bid meeting

: Yes/No

ii) Complete item rate comparative

statement

: Yes/No

iii) Note leading to recommendations

for the award (evaluation report)

: Yes/No

iv) One conformed copy of agreement

: Yes/No


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10. Reasons for delay, if any, in

forwarding the contract agreement.

(The agreement should be forwarded

for post review by the Bank within ten

days of signing of the agreement with

all the enclosures.)

: ……………………………………….

……………………………………….

……………………………………….

11. GENERAL : ……………………………………….

……………………………………….

……………………………………….

12. Has the letter of appointment of

Adjudicator been issued following the

suggested format.

: Yes/No

……………………………………….

……………………………………….


Name: ……………………..


Date: …………………..


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ENCLOSURE - 10

PROCUREMENT

CHECKLIST FOR POST-AWARD REVIEW OF CONTRACTS

FOR GOODS AND EQUIPMENT

1. (v) GENERAL

: ………………………………………

1.1 Name of the Project

: ………………………………………

1.2 Procurement Package Number

: ………………………………………

1.3 Procurement Plan Reference

: ………………………………………

1.4 Description of Goods

: ………………………………………

1.5 Estimated cost of Goods

: Rs.…………………………… lakhs

1.6 Stipulated period of completion : …………………………(in months)

(including non-working season from

the date of award)

1.7 Whether the method of procurement

adopted is in accordance with the

Procurement Plan

: i) Yes /No ii) ICB/NCB

2. BIDDING DOCUMENT

2.1 Whether the bidding document used

for this work is according to the

standard model document cleared with

the Bank?

: Yes/No

2.2 If no, list the deviation from standards: : 1. …………………………………..

2. …………………………………..

3. …………………………………..

2.3 Whether price adjustment clause

provided?

.

: Yes/No

2.4 Bid Security

a) Whether the guidelines have

been followed in fixing the Bid

Security? If no, give reasons.

b) What is the percentage/

amount? (No exemption should

be permitted to any bidder or

any class of bidders)

:

:

Yes/ No

……………….%

2.5 Whether any preference on price or : Yes/No


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other conditions allowed in the bidding

document/ award to any bidder or class

of bidders? If yes, list the preferences.

(No preferential treatment should be

given to any bidder or class of bidders

either for price or for conditions unless

specifically cleared with the Bank and

stipulated in the Project Agreement)

2.6 Does the bidding document provide for

advances?

If so, give details

What is the interest rate on advances?

: Yes/No

………………..

………………%

2.7 Specified performance security in the

bidding document – Percentage/ or

amount

: ………………%

………………...

2.8 Cost of bidding documents

: Rs……………………………………

3.0 BID INVITATION AND ISSUE OF BIDDING DOCUMENTS:

3.1 Whether the bids for this item(s) were

previously rejected and are being

reinvited? If yes, whether Bank’s

clearance was obtained? Give

reference (Bids should not be rejected

without Bank’s prior consultation)

: Yes/No

3.2 Date of invitation of bids

: ………………………………………

3.3 Publication of NIT

(give names of national newspapers

and date of publication)

: 1………………………………………

2. ……………………………………

3………………………………………

3.4 Dates when bidding documents were

made available for sale: (should

generally be 30 to 60 days; if not,

specify reasons?)

: From………………to………………..

4 PRE BID CONFERENCE

4.1 Date of pre-bid conference

(Schedule it at about mid of bidding

time)

: ……………………………………….


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4.2 Whether pre-bid minutes were cleared

with the Bank? When?

: Yes/No……………………………….

4.3 Was any amendment issued after pre-

bid conference?

: Yes/No

4.4 Whether minutes of prebid conference

and amendment transmitted to all the

prospective bidders

Yes/No

5.0 SALE AND RECEIPT OF BIDDING DOCUMENTS:

5.1 Last date of receipt of bids and the

date of opening of bids. (Both should

be the same)

: ……………………………………….

5.2 No. of documents purchased by

prospective bidders

: ……………………………………….

5.3 No. of bids received

: ……………………………………….

6.0 EVALUATION :

6.1 Has award been made to the lowest

responsive bidder who satisfies the

minimum qualification criteria

specified in the bidding document.

(Give rank lowest, or second lowest or

third lowest, etc.)

: Yes/No

6.2 Give reasons for ignoring lower offers

if the lowest bidder is not awarded the

contract

: ……………………………………….

6.3 Are you satisfied that the bidder who

has been awarded the contract has the

appropriate standards of capability and

financial resources to execute the

supply as required on the basis of

information furnished? Comment

briefly

: ………………………………………

6.4 Is the award to the lowest responsive

bidder conditional?

: Yes/No

6.5 Where any negotiations held with the

bidders after opening of bids? If yes,

was Bank’s clearance was obtained

before holding negotiations and when?

: Yes/No


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If Bank’s clearance was not obtained

why ?

(Bank does not favour any

negotiations.)

6.6 Whether the award was made within

the original bid validity?

: Yes/No

i) If no, list the reasons for delay

a) date of opening

b) date of award

:

:

:

……………………………………….

……………………………………….

……………………………………….

ii) If extension of bid validity was

sought, was that from all bidders and

not from the lowest alone?

: Yes/No

iii) Was the period of extension

exceeded 4 weeks?

: Yes/No

iv) If affirmative, was Bank’s

clearance obtained?

: Yes/No

iv) If yes, indicate date of clearance

: ……………………………………….


7.1 Name of Supplier

: ……………………………………….

7.2 Date of award of contract

: ……………………………………….

7.3 Date of signing of contract

: ……………………………………….

7.4 Contract value as awarded

: ……………………………………….

7.5 Contract number and date

: ……………………………………….

7.6 Date of start

: ……………………………………….

7.7 Stipulated time of completion of work : ……………………………………….

8.0 PERFORMANCE SECURITY :

8.1 Specified warranty period

: ………………………………months

8.2 Validity as required

: ………………………………months

8.3 Has the successful bidder furnished

performance security in various



conditions of contract? If so, indicate:

: Yes/No


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a) Amount in currency of the

contract

b) Form

c) Validity


: Rs……………………………………

……………………………………….

……………………………………….

9.0 ENCLOSURES :

9.1 Have the following been enclosed?

i) Minutes of pre bid meeting

:

Yes/No

ii) Complete item rate comparative

statement

: Yes/No

iii) Note leading to recommendations

for the award (Evaluation Report)

: Yes/No

iv) One confirmed copy of agreement

: Yes/No

10. Reasons for delay, if any, in

forwarding the contract agreement.

(The agreement should be forwarded

for post review by the Bank within ten

days of signing of the agreement with

all the enclosures.)

: ……………………………………….

……………………………………….

……………………………………….

11. GENERAL :

(Any other relevant information

concerning the above procurement)

: ……………………………………….

……………………………………….

……………………………………….


Name: ……………………..


Date: ………………….